bhaskar saikia

On 28 April 2025, large parts of Spain and Portugal were plunged into sudden darkness as a major power outage disrupted everyday life. The failure was widespread and affected millions. ATMs stopped working, card machines failed, internet access became patchy and digital payment systems were rendered useless.

In a matter of minutes, modern society was reminded of a harsh truth: our dependence on digital infrastructure, especially in banking and transactions, is built on a fragile foundation—electricity.

Initial reports pointed to extreme weather events as the likely cause. However, these were later ruled out, and as of now, authorities remain clueless about what really caused the grid to collapse.

Was it a cyber attack? Was it a technical failure?

No one can say for sure.

But what is clear is this: our power grids are vulnerable, and any large-scale failure, whether due to cyber intrusion, internal malfunction or sabotage, can bring our digital financial systems to a halt.

Imagine a society where everything depends on swiping a card or scanning a QR code—and then, suddenly, nothing works. Supermarkets can’t process payments, petrol pumps shut down, online banking becomes inaccessible and you can’t even pay for a bottle of water unless you’re carrying physical cash.

This incident in Europe should serve as a wake-up call for the rest of the world. The more we digitize, the more we need backup plans. And one of the simplest, most practical backups is keeping a modest amount of cash on hand.

Cash may seem old-fashioned in this age of digital wallets, but it has unique strengths. It doesn’t need electricity, mobile networks or internet servers to function. It simply works. In times of crisis—be it natural disasters, cyber attacks or infrastructural collapse—cash provides immediate access to basic needs.

Keeping some physical currency at home or in your emergency kit isn’t about distrust in the system. It’s about building personal resilience. Just like you would keep a torch during blackouts or a first-aid kit for emergencies, having cash is simply a smart precaution.

So next time you clean out your wallet thinking you don’t need cash anymore, think again. A few banknotes tucked away could be the difference between helplessness and self-reliance.

(In tomorrow’s blog, I’ll explore the value of coins versus banknotes, and delve into the concepts of intrinsic and extrinsic value in money and currency.)