Slovakia Safeguards Cash Payments with Constitutional Amendment

Legislators in Slovakia have accepted a constitutional amendment ensuring the ability to pay for products and services with actual money, which is a crucial step toward protecting individuals’ rights to do so. According to the news source Euractiv, the amendment saw 111 out of 150 members of the national parliament endorse the proposed bill.

The law intends to protect cash payments, especially if the digital euro becomes required in the eurozone, of which Slovakia is a member. This constitutional clause guarantees that physical payments continue to be an alternative for Slovak residents even while the European Central Bank (ECB) leads the development of the digital form of the single currency.

Constitutional Amendment Ensures Cash Payment Rights

The right-wing, anti-EU party Sme Rodina (We Are Family) put out the amendment proposal. One of the law’s writers, Milo Svrek, underlined the need of having a constitutional clause that enables the country to protect itself from foreign forces, stating, “It is very important that there is a provision in the Constitution based on which we can defend ourselves in the future against any orders from the outside, saying there can only be digital euro and no other payment options.”

While EU authorities have asserted that the digital euro is intended to complement rather than replace currency, there are worries among detractors. They worry that the use of the digital currency may eventually be made mandatory throughout the eurozone and that the European Central Bank would impose control over transactions using it. Liberal lawmaker Marián Viskupič expressed skepticism, noting that although the digital euro might initially be presented as an alternative, he stated, “It may be initially sold as an alternative, but gradually it will become apparent that it can only be exclusive.”

By using the digital euro’s monitoring capabilities, Viskupi further cautioned that the ECB could be able to learn a great deal about people’s lives. He called the central bank digital currency (CBDC) project “a social engineer’s dream.” The possible loss of privacy brought on by the digital euro worried several members of the extreme right as well.

Amendment Supports Merchants’ Payment Preferences

The National Council of Slovakia, the nation’s parliament, authorized a change that not only upholds the people’ right to cash payments but also protects the interests of businesses who decline to take cash for “appropriate or generally applicable reasons.” Businesses that are worried about security threats, such as the potential for robberies, such as owners of card-only vending machines and store owners, are accommodated by this clause.

The change guarantees that businesses may operate in accordance with their unique needs and circumstances while acknowledging the wide range of payment preferences of merchants. The Act encourages the growth of alternative payment methods while preserving a balance between digital transactions and the usage of real currency by recognizing their option to not take cash.