In today’s fast-paced digital world, electronic payments and digital banking have become an integral part of daily life, offering unmatched speed and convenience while steadily reducing reliance on cash. Yet over-reliance on technology in the financial sector carries its own risks—particularly in times of crisis or natural disaster, when connectivity and banking systems can be disrupted.
A recent example emerged in Egypt when a fire broke out at the Ramses Central Exchange, triggering a temporary internet and network outage. Some services are still recovering, including the stock exchange and certain banking operations, with ongoing efforts to restore full functionality.
In response, the Central Bank of Egypt (CBE) acted swiftly by extending operating hours at select branches to improve customer access to in-person services. It also temporarily increased daily cash withdrawal limits for individuals and businesses to EGP 500,000, up from EGP 250,000, until the situation stabilises.
The incident reignited public debate, with some voices advocating for a full return to cash—or at least a significant retreat from digital reliance—arguing that cash remains the only truly resilient medium under all circumstances.
While this view is understandable, it overlooks the significant downsides of an all-cash economy: greater exposure to theft, time-consuming transactions, higher operational costs, and difficulty functioning in an increasingly digitised world. It also runs counter to one of the Central Bank’s national strategic goals: reducing cash dependency and promoting financial inclusion.
This is why expanding digital banking services and investing in secure technology infrastructure remains the wiser, more sustainable approach—provided it is managed responsibly. What we truly need is a well-defined emergency response plan to strike the right balance between cash and technology, ensuring business continuity without leaning too heavily in either direction.
Even countries with more advanced technological ecosystems are not immune to disruption. In 2018, several banks in Finland faced outages that temporarily halted electronic payments, prompting a short-term return to cash. More recently, hurricanes and floods in the US knocked out power grids and disabled digital systems, forcing affected communities to rely on physical cash as a lifeline.
These global examples highlight a critical lesson: the importance of maintaining strong, independent backup systems that can be activated in times of crisis. Such systems should be stress-tested regularly, with clear recovery timelines aligned to global standards.
In Egypt, all banks already operate under risk management frameworks to address tech-related threats and cybersecurity risks, including protocols for relocating operations to alternate premises if needed. Yet achieving full resilience requires a coordinated, top-tier response from the entire ecosystem—including service providers and telecom operators. This means aligning with international standards, regularly updating systems, educating users on emergency procedures, investing in reliable internet infrastructure, and ensuring backup power sources are in place.
Governments, too, have an essential role to play by enacting user protection laws, enforcing stringent security standards, and mandating service continuity.
We should not fall once again for the myth that “cash is king.” A full return to cash is not the solution. Nor is it sensible to abandon the transformative advantages of technology. The smartest path forward lies in balance: investing in resilient infrastructure, strengthening cybersecurity, keeping cash as a strategic backup, and raising public awareness. This way, we can build systems that are resilient, inclusive, and ready for the future.
Mohamed Abdel Aal – Banking expert
