Business
Cash Still Dominates Over Half of Transactions in Europe Despite Digital Surge
Despite the rapid rise of digital payments across Europe, cash remains the most frequently used payment method in the eurozone, according to new data from the European Central Bank (ECB). The 2024 ECB survey, which covered 40,000 participants across 20 eurozone countries, found that 52 percent of all transactions were paid in cash — though its share drops to 39 percent when measured by total value.
While cash use is steadily declining, banknotes still play an essential role in everyday life across much of Europe. In 14 of the 20 eurozone nations, cash remains the dominant form of payment, accounting for between 45 and 55 percent of all transactions in about half of them. The survey revealed a stark geographical divide between cash-reliant southern and eastern European countries and more digital-focused northern and western economies.
Malta reported the highest share of cash transactions at 67 percent, followed by Slovenia at 64 percent and Italy at 61 percent. Spain also remained heavily cash-dependent, with 57 percent of payments made using banknotes. By contrast, digital payments have taken firm hold in the Netherlands, where just 22 percent of transactions are in cash, and in Finland, where the figure stands at 27 percent.
Among the eurozone’s four largest economies, Germany sits slightly above the regional average at 53 percent, while France is below it at 43 percent — reflecting a stronger embrace of contactless and mobile payments. “Dutch consumers perceive contactless payments as faster and more convenient than cash,” a spokesperson from the Dutch Central Bank told Euronews Business, noting that widespread acceptance and low merchant fees have encouraged digital adoption.
When measured by value rather than volume, cash plays a smaller but still significant role. Lithuania leads the euro area with 59 percent of payment value made in cash, followed by Slovakia, Slovenia, and Austria, each at 56 percent. The Netherlands again ranks lowest, with cash representing just 17 percent of payment value.
The ECB’s findings also show that cash remains the preferred method for small purchases, while cards dominate payments above €50. Many consumers continue to value cash for its anonymity and simplicity — 41 percent cited privacy as the main advantage, while 35 percent said using cash helps them stay aware of spending. Only 18 percent viewed cash as safer than digital options.
Generational trends are also shaping the shift: consumers under 40 now use cash for fewer than half of their transactions, whereas those aged 65 and older still rely on it for 57 percent of payments.
Overall, while digital and contactless payments are expanding rapidly, the ECB data underscores that cash continues to hold a vital place in Europe’s economy — particularly in southern and eastern regions where tradition, accessibility, and trust in physical money remain strong.
Business
South Korea’s Economy Grows 1% as Semiconductor Boom Drives Exports and Investment
South Korea’s economy grew faster than expected in the third quarter, supported by strong semiconductor demand and increased investment in production equipment, although economists warned that the country’s dependence on the chip industry leaves it exposed to a potential slowdown in global artificial intelligence spending.
Gross domestic product rose by 1.0% between July and September compared with the previous quarter, according to preliminary figures released by the Bank of Korea on Tuesday. The expansion was more than three times the central bank’s August forecast of 0.3%.
Exports increased by 2.3% during the quarter, driven by semiconductors, machinery and electrical equipment, the Bank of Korea said. Investment in facilities climbed by 4.1%, largely reflecting spending on machinery used in semiconductor manufacturing.
The figures support the central bank’s assessment that strong demand for chips is sustaining export performance and business investment, according to Kwon Hyo-sung of Bloomberg Economics.
South Korea’s semiconductor exports reached $148 billion (€127 billion) in the third quarter, marking a 218.7% increase from the same period a year earlier, government figures showed. Rising chip demand has provided a significant boost to the country’s trade performance and broader economic activity.
On an annual basis, South Korea’s economy expanded by 3.4% in the third quarter, compared with 3.7% growth in the previous three months.
Real gross domestic income, a measure of the purchasing power generated by economic activity, increased by 18.8% year-on-year. The rise was the strongest in nearly 49 years and was supported by higher semiconductor prices.
The latest figures follow a strong start to the year. South Korea’s economy expanded by 1.7% quarter-on-quarter in the first three months of the year, its fastest growth in more than five years, as demand for semiconductors strengthened.
However, economists warned that the recovery remains concentrated in one major industry, creating risks if demand weakens.
“The risk is that growth stays heavily concentrated in the semiconductor sector, leaving South Korea exposed to a slowdown in global AI spending,” said John Bromhead, a senior economist at Moody’s Analytics.
The warning reflects concerns that the current wave of investment in AI infrastructure may not continue at the same pace. A reduction in spending by technology companies could weaken demand for advanced chips, affecting South Korea’s exports, manufacturing investment and economic growth.
The semiconductor boom has also helped strengthen the country’s external finances. South Korea recorded a current account surplus of $116.6 billion (€100 billion) in the second quarter, reaching a record high.
While robust chip exports have supported growth and income, the latest data highlights the challenge facing policymakers as they seek to sustain economic momentum while limiting exposure to shifts in the global technology market.
Business
Russia and Kazakhstan Sell Gold Reserves as Poland Continues Buying
Russia and Kazakhstan are reducing their gold holdings while Poland continues to expand its reserves, highlighting differing strategies among central banks as gold prices remain elevated. Analysts say the sales are unlikely to trigger a major decline in global prices, although they raise questions about whether other countries could follow the same path.
Russia has been selling gold throughout 2026. In September, its reserves fell by approximately 6.2 tonnes, taking the total reduction since January to around 62 tonnes. A comparable pace of selling has rarely been seen in Russia’s modern history. In 1998, the country sold 118 tonnes of gold over three months.
Adam Stroniawski, managing director of Polish precious metals dealer Mennica Skarbowa, told Euronews that Russia’s sales were linked to a budget shortfall caused by the war in Ukraine and increased defence spending.
He said Russia was selling gold outside the London bullion market, with transactions taking place through Hong Kong and China’s central bank emerging as the main buyer. Hong Kong trade data showed that about 100 tonnes of Russian gold arrived between January and July, nearly three times the volume recorded during the same period last year.
Stroniawski expects the transactions to have a limited effect on international prices. He also said Russia could eventually return to buying gold and rebuilding its reserves, as it did after its 1998 sell-off.
Kazakhstan has also announced plans to reduce its gold holdings. The country was among the world’s largest gold buyers during the first eight months of 2026, but intends to bring gold’s share of its total reserves down from around 78% to 75% by the end of the year.
Stroniawski said the move could be temporary, reflecting budget pressures or an opportunity to realise profits after years of buying. The planned reduction is relatively modest and sales are expected to be spread over time, limiting the likely effect on global markets.
Poland, meanwhile, is not expected to follow the same course. The National Bank of Poland has steadily increased its gold holdings and is approaching its target of 700 tonnes. Stroniawski said the country’s substantial reserves support its credit standing and help stabilise its currency. Poland currently ranks 10th globally in gold reserves, he added, and reaching the target would not necessarily mark the end of purchases.
Gold’s performance has been mixed in 2026 following substantial gains in previous years. According to the World Gold Council, prices rose 25.5% in 2024 and 67.4% in 2025 in US dollar terms, before declining 4.4% during the first nine months of 2026.
Stroniawski believes temporary price corrections do not necessarily undermine gold’s longer-term outlook. Central-bank purchases and demand from investors seeking a safe-haven asset could continue to support prices.
He cautioned, however, that investors should not expect guaranteed short-term returns. Gold, he said, is more likely to deliver reliable gains over an extended period.
Business
San Francisco Startup Claims Breakthrough in Turning Mercury Into Gold
San Francisco-based fusion energy startup Marathon Fusion says it has converted mercury into stable gold at a rate 10 times higher than a record previously reported by CERN, reviving questions about whether laboratory-produced gold could eventually affect the precious metal’s market.
The company announced on Wednesday that it had achieved the transmutation last month. However, the claim has not been independently verified, and details about the quantity produced, production costs and the process’s commercial viability remain unclear.
Founded in 2023 by Kyle Schiller and Adam Rutkowski, a former SpaceX engineer, Marathon Fusion develops fuel systems for future fusion power plants. These facilities aim to generate electricity by fusing atomic nuclei, a process that also powers the sun.
The company lists the US Department of Energy as a partner on its website and received a 2023 award from the department’s Advanced Research Projects Agency-Energy. Its backers include Breakthrough Energy, founded by Bill Gates, and mining group Anglo American, which owns diamond company De Beers.
Marathon said its process uses neutrons generated by fusion reactions to bombard mercury. This produces an unstable isotope that subsequently decays into gold.
The company said it had exceeded a record reported by CERN, the Geneva-based organisation operating the world’s largest particle physics laboratory. In 2025, CERN reported that its Large Hadron Collider had produced approximately 29 picograms of gold during operations between 2015 and 2018. The gold nuclei existed for only a fraction of a second before being destroyed in collisions with accelerator equipment.
Marathon also claims to have broken a 40-year-old Soviet record using its plasma centrifuge, a machine designed to separate isotopes used in fusion fuel. It is developing a reactor in San Francisco intended to achieve record power density.
The announcement has drawn attention because of the impact laboratory-grown diamonds have had on the natural diamond industry. Lab-grown diamonds are chemically identical to mined stones but can be produced at substantially lower prices. Industry analyst Paul Zimnisky said wholesale prices for laboratory-grown diamonds fell by 90% to 95% from their 2015 levels.
De Beers introduced its Lightbox laboratory-grown diamond brand in 2018 but discontinued it in 2025 to concentrate on natural diamonds. Anglo American is now in talks to sell its 85% stake in De Beers for about $1 billion, according to Bloomberg.
Gold presents a different challenge. Unlike diamonds, it is also widely held by central banks as a reserve asset. The World Gold Council reported that mines produced 3,672 tonnes in 2025, while approximately 222,600 tonnes have been mined throughout history.
Marathon estimated in a 2025 study that a fusion plant could potentially produce about five tonnes of gold annually per gigawatt of electricity. One hundred plants operating at that level could add around 500 tonnes to annual supply, equivalent to roughly 14% of 2025 mine production.
However, commercial fusion power plants are not yet generating electricity for sale, and widespread deployment remains years away. Marathon has also said the resulting gold could contain radioactive isotopes and might require storage for up to 18 years before being sold.
No public plans have been announced to commercialise the process. While the claim remains unverified, the prospect of producing gold through nuclear reactions has raised questions about how future technological advances could affect the precious metal market.
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