Gerald Darmanin has argued that digital transactions are much easier to trace

France's Justice Minister Gerald Darmanin has proposed abolishing cash transactions, arguing that digital payments - including cryptocurrencies - are much easier to trace than physical money and would help authorities combat drug trafficking and other criminal activity.

Speaking before a Senate commission on Thursday, Darmanin said that "a large part of daily delinquency and even criminal networks rely on cash," anddeclaredthat "the end of cash would prevent the establishment of drug dealing points."

Darmanin, who previously oversaw public finances as Minister of Public Action and Accounts, acknowledged that banning physical money wouldn't eliminate the drug trade, but insisted that "once the money is traceable," it becomes "more complicated" for both consumers and dealers to escape financial oversight.

The justice minister admitted that criminal groups would likely shift to using cryptocurrencies in place of cash - but argued this would be an improvement, since "crypto is often easier to trace" due to blockchain records and new EU rules on transaction monitoring. Under the European Councildirectiveset to come into force next year, crypto asset providers will be obligated to collect and share sender and recipient data with tax authorities, effectively ending anonymous crypto transfers within the bloc.

The proposal to ban cash is likely to face resistance from the French public, who continue to view it as a vital tool for privacy and budgeting. A 2024 survey by the Banque de France found that while card payments are now dominant (used by 62% of respondents), 60% still consider access to cash "important or very important." Respondents cited anonymity (40%), immediate settlement (37%), and better control over spending (31%) as key advantages of physical money.

Critics have warned that banning cash altogether could raise concerns about financial surveillance and undermine personal freedoms. Darmanin acknowledged those concerns but argued that illicit cash circulation poses a greater systemic risk. "It is good that we monitor notaries, banks, and real estate," he said, "but it's time we look at parallel cash circuits that bypass the formal economy altogether."

Restrictions on cash transactions in France and across the EU have already tightened in recent years. In France, any cash payment over €1,000 to a professional entity is prohibited and punishable by a fine of up to 5%, unless the person has no bank account or other means of digital payment. For transactions between private individuals, the cap is €1,500, unless the parties sign awritten contractwith full names and contact details, according toguidelinesfrom the Ministry of Economy and Finance.

At the EU level, the European Parliament passed adirectiveimposing a bloc-wide hard cap of €10,000 on cash transactions starting in 2027. According to the European Commission, the aim is to close loopholes that allow criminal groups to move large sums anonymously.

(RT.com)