Opinion of the European Central Bank of 25 June 2025 on access to cash and a constitutional right to payment in cash (CON/2025/14)

OPINION OF THE EUROPEAN CENTRAL BANK of 25 June 2025 on access to cash and a constitutional right to payment in cash (CON/2025/14) Introduction and legal basis

On 13 June 2025 the ECB received a request from the Magyar Nemzeti Bank (MNB) for an opinion on a draft MNB decree on the detailed rules on the criteria for the installation of ATMs and on the burden and cost sharing of payment service providers (PSPs) (hereinafter the ‘draft MNB decree on ATMs’). On 24 March 2025 a Government decree on the emergency maintenance of automated teller machines (ATMs) (hereinafter the ‘first Government decree on ATMs’) was published in the Hungarian Official Gazette . On 14 April 2025 the fifteenth amendment to the Fundamental Law of Hungary (hereinafter the ‘amendment to the Fundamental Law’) was published in the Hungarian Official Gazette . On 12 May 2025 the Law on the installation of ATMs (hereinafter the ‘Law on ATMs’) was published in the Hungarian Official Gazette . On 29 May 2025 a decree of the Ministry of the National Economy on certain issues related to the accelerated deployment of ATMs starting in 2025 (hereinafter the ‘Ministerial decree on ATMs’) was published in the Hungarian Official Gazette . On 5 June 2025 a Government decree amending Government decrees related to the use of cash (hereinafter the ‘Government decree on cash’) and a Government decree on the emergency maintenance of ATMs (hereinafter the ‘second Government decree on ATMs’) were published in the Hungarian Official Gazette . The second Government decree on ATMs repealed the first Government decree on ATMs . On 20 June 2025 the Law amending certain laws in relation to the use of cash (hereinafter the ‘Law on cash’) was published in the Hungarian Official Gazette . The European Central Bank (ECB) has not been consulted by the Hungarian authorities on the amendment to the Fundamental Law, the Law on ATMs, the Law on cash, the first Government decree on ATMs, the Government decree on cash, the second Government decree on ATMs or the Ministerial decree on ATMs. The ECB has decided to deliver an own initiative opinion on the amendment to the Fundamental Law, the Law on ATMs, the Law on cash, the Government decree on cash, the second Government decree on ATMs

1 Az automata bankjegykiadó gépek működésének veszélyhelyzeti fenntartásáról szóló 49/2025. (III. 24.) Korm. rendelet, Magyar Közlöny 2025/33 (III. 24.).

2 Magyarország Alaptörvényének tizenötödik módosítása, Magyar Közlöny 2025/41 (IV. 14.).

3 Az automata bankjegykiadó gépek telepítéséről szóló 2025. évi XVIII. törvény, Magyar Közlöny 2025/55 (V. 12.).

4 Az automata bankjegykiadó gépek 2025-ben kezdődő, gyorsított telepítésével kapcsolatos egyes kérdésekről szóló 16/2025. (V. 29.) NGM rendelet, Magyar Közlöny 2025/63 (V. 29.).

5 Kormányrendeletek készpénzhasználattal összefüggő módosításáról szóló 128/2025. (VI. 5.) Korm. rendelet az automata bankjegykiadó gépek működésének veszélyhelyzeti fenntartásáról szóló 129/2025. (VI. 5.) Korm. rendelet, Magyar Közlöny 2025/67 (VI. 5.).

6 Article 4 of the second Government decree on ATMs.

7 Egyes törvényeknek a készpénzhasználattal összefüggő módosításáról szóló 2025. évi LXII. törvény, Magyar Közlöny 2025/74 (VI. 20.). and the Ministerial decree on ATMs. This opinion is also the ECB’s response to the MNB’s consultation request on the draft MNB decree on ATMs. The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union and Article 2(1), second and third indents, of Council Decision 98/415/EC , as the amendment to the Fundamental Law, the Law on ATMs, the Law on cash, the Government decree on cash, the second Government decree on ATMs, the Ministerial decree on ATMs and the draft MNB decree on ATMs relate to means of payment and/or the MNB. In accordance with Article 17.5, first sentence, of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

1. Purpose of the amendment to the Fundamental Law, the Law on cash, the Government decree on cash, the Law on ATMs, the second Government decree on ATMs, the Ministerial decree on ATMs and the draft MNB decree on ATMs

1.1 The amendment to the Fundamental Law 1.1.1 The amendment to the Fundamental Law establishes the right to payment in cash as a fundamental right under Hungarian law. According to the explanatory memorandum accompanying the amendment, cash is legal tender that is physically independent from digital systems, banks and other third parties. Only the maintenance of cash circulation can ensure that the functioning of the economy does not become completely vulnerable to electronic financial systems, which may be vulnerable for technical reasons or due to the market. It is therefore necessary to enshrine at constitutional level the principle that the possibility to pay in cash is a fundamental right. The enshrinement of this right at constitutional level also guarantees that the possibility of paying in cash remains available to all, thus avoiding the possibility of financial exclusion. 1.1.2 The right to payment in cash supplements the right to own and inherit property, which is contained in the chapter listing the fundamental rights of citizens . Under the current provision, everyone has the right to own and inherit property, as well as to make payments in cash, and owning property is connected to social responsibility. 1.1.3 The Fundamental Law provides that fundamental rights can be limited to the extent strictly necessary for the purpose of enforcing another fundamental right or protecting a constitutional value, in proportion to the aim pursued and with due regard for the essential content of the fundamental right . 1.1.4 The Fundamental Law provides that the official currency of Hungary is the forint , and under Hungarian law banknotes and coins issued by the MNB in the official currency of Hungary are the legal tender of Hungary .

8 Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42, ELI: https://eurlex.europa.eu/eli/dec/1998/415/oj).

9 Article XIII (1) in Chapter ‘Freedom and responsibility’ (‘Szabadság és felelősség’) of the Fundamental Law of Hungary.

10 Article I (3) of the Fundamental Law of Hungary.

11 Article K of the Fundamental Law of Hungary. 1.2 The Law on cash 1.2.1 According to the explanatory memorandum accompanying the Law on cash, the purpose of the Law is to ensure that citizens have, in their private relations, the possibility to pay in cash, in addition to digital payment options, for the purchase of goods and services. 1.2.2 In particular, the Law on cash provides that undertakings must ensure the possibility for consumers to pay the price of goods in cash, with the exception of cross-border online sales and online service contracts. The Law on cash also provides that consumers must have the possibility to pay in cash for specified commercial and service activities, except for online service contracts for the crossborder provision of services. The Law on cash also provides that where the price in the case of a transfer of ownership of land is paid by means of a lawyer's or a notary’s deposit, the price provided for in the contract may be paid in cash. 1.3 The Government decree on cash 1.3.1 The Government decree on cash aims to make the use of cash more widely available to citizens, in accordance with the amendment to the Fundamental Law . 1.3.2 In particular, the Government decree on cash provides that claimants of certain housing subsidies in small municipalities and applicants for a loan scheme for housing may pay, in cash, the purchase price for buying a dwelling or the purchase price difference for exchanging a dwelling. Credit institutions involved in the provision of these subsidies and loans remain obliged to transfer their payment to the account indicated by the sellers of the dwellings . 1.4 The Law on ATMs 1.4.1 The Law on ATMs aims to promote the safe supply of cash to the public, with particular attention to the needs of people living in rural areas and areas with lower population density. In this respect, the Law on ATMs seeks to guarantee the operation of the ATM network at the municipal level . 1.4.2 Under the Law on ATMs, PSPs providing payment account management services and issuing payment instruments for consumers must provide cash withdrawal services for account holders who are consumers in any municipality. This service may be provided by means of ATMs, and PSPs may agree to jointly install and operate an ATM. The local government of the municipality concerned must

13 Amending the Law on Consumer Protection, a fogyasztóvédelemről szóló 1997. évi CLV. törvény, Magyar Közlöny 1997/119 (XII. 23.).

14 Amending the Law on Commerce and the Law on the general rules on commencing and pursuing service activities, a kereskedelemről szóló 2005. évi CLXIV. törvény, Magyar Közlöny 2005/168 (XII. 25.), a szolgáltatási tevékenység megkezdésének és folytatásának általános szabályairól szóló 2009. évi LXXVI. törvény, Magyar Közlöny 2009/94 (VII. 8.).

15 Amending the Law on certain provisions and transitional rules in connection with the Law on the trade of agricultural and forestry land, a mező- és erdőgazdasági földek forgalmáról szóló 2013. évi CXXII. törvénnyel összefüggő egyes rendelkezésekről és átmeneti szabályokról szóló 2013. évi CCXII. törvény, Magyar Közlöny 2013/207 (XII. 12.).

16 Preamble to the Government decree on cash.

17 Articles 1 and 2 of the Government decree on cash, amending Government decrees on housing subsidies in small municipalities and on a preferential loan scheme for housing for families, a kistelepüléseken nyújtható otthonteremtési támogatásokról szóló 302/2023. (VII. 11.) Korm. rendelet, a családok otthonteremtését támogató kedvezményes CSOK Plusz hitelprogramról szóló 518/2023. (XI. 30.) Korm. rendelet.

18 Preamble to the Law on ATMs. provide a suitable location free of charge for cash withdrawal services and cooperate with the PSPs in shaping the appropriate conditions. The PSP must provide cash withdrawal services even if the municipality is unable to provide the appropriate conditions . 1.4.3 Under the Law on ATMs, credit institutions that operate ATMs must not suspend the operation of ATMs that were already in operation at the date of entry into force of the Law on ATMs, and bank branches must not discontinue their cash withdrawal services for payment accounts . 1.4.4 The MNB is given sanctioning powers in its supervisory function to enforce the Law on ATMs. The level of possible fines ranges from HUF 2 million to HUF 200 million. Fines for breach of the obligation to provide cash withdrawal services constitute direct revenues of the central budget . 1.5 The second Government decree on ATMs 1.5.1 The second Government decree on ATMs stipulates that ensuring access to cash is a priority in rural areas, and it is therefore essential that the operation of ATMs that were already in operation at the date of entry into force of the Law on ATMs is not discontinued . 1.5.2 The second Government decree on ATMs derogates from the Law on ATMs during the current state of emergency declared due to the armed conflict and humanitarian catastrophe in Ukraine by allowing credit institutions to suspend the operation of an ATM, in justified cases. A justified case may be based, for instance, on the average cash withdrawal turnover in the given municipality or district and the termination of the lease over the premises on which the ATM is located . 1.6 The Ministerial decree on ATMs 1.6.1 The Ministerial decree on ATMs sets the deadline for PSPs to install ATMs in municipalities with over 500 inhabitants according to the 2022 census data of the Hungarian Central Statistical Office. For municipalities with a population of more than 1000, the deadline is 31 December 2025, and for municipalities with a population of more than 500, the deadline is 31 December 2026 . 1.6.2 The Ministerial decree on ATMs also sets out the criteria for the location in which the local government of the municipality concerned must provide for the installation of ATMs. The location has to be, amongst other criteria, easily accessible and barrier-free, adequately illuminated, with good transport connections, preferably close to places where people do their daily business, and where the access route is not restricted. If such a location cannot be provided on the territory of the municipality, the local government must examine other locations in cooperation with the PSP . 1.7 The draft MNB decree on ATMs

22 Preamble to the second Government decree on ATMs.

24 Article 1 of the Ministerial decree on ATMs.

25 Article 2 of the Ministerial decree on ATMs. 1.7.1 The draft MNB decree on ATMs, taking into account the provisions of the Ministerial decree on ATMs, sets out the detailed criteria for determining the PSPs required to install and operate ATMs per municipality and detailed rules on the equal sharing of the burden and costs of PSPs. The draft MNB decree on ATMs also creates groups of municipalities affected by the obligation to install ATMs and determines the PSPs obliged to install ATMs there . 1.7.2 PSPs that choose to jointly fulfil their obligation to install and operate an ATM in the municipalities concerned must designate the PSP which is obliged to notify and provide data to the MNB. PSPs may also agree amongst themselves to switch municipalities and may take over from each other the obligation to install an ATM . 1.7.3 If the scope of PSPs changes after the entry into force of the draft MNB decree on ATMs, the MNB must carry out a new examination based on the relevant criteria and, on the basis of the results of this examination, the MNB must again determine the list of PSPs obliged to install and operate an ATM .

2. General observations

2.1 The ECB notes that, during the last months, the Hungarian authorities have adopted a new amendment to the Fundamental Law, as well as a large number of laws and decrees, all related to cash acceptance and access to cash. A nationwide cash supply network requires a complex infrastructure. Due to this, the stakeholders involved need appropriate preparation time to adapt regulatory changes to mitigate potential network side effects and avoid any potential overlap with rules currently in force. 2.2 The ECB understands that once the state of emergency declared due to the armed conflict and humanitarian catastrophe in Ukraine is terminated, the Law on ATMs will be restored to its full effect, as a consequence of which credit institutions may no longer suspend the operation of ATMs, even in justified cases. 2.3 The ECB understands that electronic payment instruments are increasingly used as a method of payment in Hungary, while the use of cash is declining. According to the MNB, electronic payment alternatives are now available in virtually all situations in Hungary and the use of electronic payments has grown significantly in recent years . Despite the significant increase in the use of electronic payments, cash remains widely used in Hungary, and according to the MNB there are significant regional and demographical differences in cash usage customs within the country . In 2023, 66 % of stores in Hungary were cash-intensive, meaning that the majority of stores saw more cash purchases than electronic purchases . This indicates that cash is still the most commonly used means of payment in Hungary.

26 Preamble, Articles 1 and 2 and Annex 1 of the draft MNB decree on ATMs.

29 Payment Systems Report 2024, Magyar Nemzeti Bank, p. 7.

30 Payment Systems Report 2024, Magyar Nemzeti Bank, pp. 14 and 19.

31 Payment Systems Report 2024, Magyar Nemzeti Bank, p. 47. 2.4 Although electronic payment instruments are used increasingly in a number of Member States, cash continues to play an important role in society and is still widely used throughout the entire population . Cash is a well-established and secure means of payment providing for immediate settlement of debts and direct control over the payer’s spending. It is currently the only payment instrument that allows citizens to settle a transaction in central bank money which is also settled instantly, while, importantly, ensuring privacy . Cash payments facilitate the inclusion of the entire population in the economy by allowing it to settle any kind of financial transaction in this way, thus ensuring freedom of choice as to the method of payment for all citizens . The ECB agrees with the view expressed in the explanatory memorandum accompanying the amendment to the Fundamental Law that the maintenance of cash circulation can ensure that the functioning of the economy does not become completely dependent on electronic financial systems. Furthermore, the ability to pay in cash remains particularly important for certain groups in society that, for various legitimate reasons, prefer to use cash rather than other means of payment, or who do not have access to bank services and electronic means of payments. These groups include disabled citizens, immigrants, socially vulnerable citizens, elderly people, minors and others with limited or no access to digital payment services . 2.5 While the ECB holds a positive view of further innovation and development in the field of electronic payment instruments, the ECB also welcomes the core objectives of the Law on ATMs and the second Government decree on ATMs to facilitate the continued use of cash in Hungarian society by an adequate level of access to cash services throughout Hungary, including in rural areas and areas with a lower population density. The availability and accessibility of cash and its fallback function in case of disruptions contribute to trust in the financial system and enhance resilience, which is important for the smooth functioning of monetary policy . In this context, the ECB notes that that an adequate level of access to cash services should guarantee reasonable and proportionate cash service networks to avoid that citizens have problems accessing their money in cash. The ECB also notes that the MNB has a mandate to define the Hungarian legal framework on access to cash . Based on this mandate, the MNB issued a decree in 2023 (hereinafter the ‘MNB decree on banknotes’) that sets out rules concerning the size and the territorial coverage of the Hungarian ATM network. The Hungarian nationwide access to cash infrastructure currently works in accordance with the MNB decree on banknotes. The ECB has previously welcomed the MNB’s initiative to regulate

32 See, for example, paragraph 1.7 of Opinion CON/2023/31 of the European Central Bank of 13 October 2023 on a proposal for a regulation on the legal tender of euro banknotes and coins (OJ C, C/2023/1355, 1.12.2023, ELI: https://eur-lex.europa.eu/eli/C/2023/1355/oj), paragraph 2.1 of Opinion CON/2024/8, paragraph 2.1 of Opinion CON/2024/19, paragraph 2.1 of Opinion CON/2024/22 and paragraph 2.5 of Opinion CON/2024/39. The ECB has stated its neutrality regarding different means of payment, which means that it does not favour one instrument over another. See paragraph 2.1 of Opinion CON/2015/55. All ECB opinions are published on EUR-Lex.

33 See paragraph 2.1 of Opinion CON/2024/1, paragraph 2.1 of Opinion CON/2024/3, paragraph 2.1 of Opinion CON/2024/8, paragraph 2.1 of Opinion CON/2024/19 and paragraph 2.1 of Opinion CON/2024/22.

34 See paragraph 2.1 of Opinion CON/2024/3, paragraph 2.1 of Opinion CON/2024/8, paragraph 2.1 of Opinion CON/2024/19 and paragraph 2.1 of Opinion CON/2024/22.

35 See, for example, paragraph 2.1 of Opinion CON/2024/1, paragraph 2.1 of Opinion CON/2024/3, paragraph 2.1 of Opinion CON/2024/8, paragraph 2.1 of Opinion CON/2024/19 and paragraph 2.1 of Opinion CON/2024/22.

36 See paragraph 2.2 of Opinion CON/2024/8, paragraph 2.2 of Opinion CON/2024/19, paragraph 2.2 of Opinion CON/2024/22 and paragraph 2.5 of Opinion CON/2024/39.

37 See Article 23/A of the Law on the MNB.

38 A bankjegyek feldolgozásáról, forgalmazásáról, valamint hamisítás elleni védelmével kapcsolatos technikai feladatokról szóló 1/2023. (I. 17.) MNB rendelet, Magyar Közlöny 2023/8 (I. 17.). the infrastructure network of credit institutions used to carry out cash transactions and facilitate cash flows with the objective of ensuring a minimum level of availability of cash for their customers throughout Hungary . The ECB notes that the Law on ATMs might conflict with the requirements of the MNB decree on banknotes, entailing the risk of unintended side effects such as increased costs for credit institutions and PSPs being obliged to install an ATM in a municipality where they potentially do not have any customers. 2.6 While the official currency in Hungary is the forint, not the euro, the ECB considers it important that all Member States, including non-euro area Member States, take appropriate measures to ensure that credit institutions and branches operating within their territories provide adequate access to cash services through ATMs or branch cashiers. This is crucial to facilitate the continued use of cash . Sufficient and effective access to cash is necessary to preserve the effectiveness of the legal tender status of cash. If citizens do not have easy access to cash, they will not be able to use it as a means of payment and store of value . 2.7 In addition, the ECB wishes to note that a minimum level of in-person cash withdrawal services – whether through ATMs or branch cashiers – may be needed at credit institutions, especially for those groups in society that do not have access to electronic means of payment. Such in-person cash withdrawal services would also enable access to cash in situations where ATM networks are temporarily unavailable. Moreover, customers should have sufficient and effective access to cash deposit services at credit institutions. This would support the acceptance of cash by payees (e.g. merchants and public sector entities) by ensuring that they can conveniently convert cash into commercial bank money and manage their liquidity efficiently, for instance to pay their suppliers and employees . 2.8 The ECB welcomes the financial sanctions that may be imposed on credit institutions under the Law on ATMs, which should facilitate the enforcement of their requirements under the Law on ATMs .

3. Constitutional law on the right to payment in cash

3.1 The ECB understands that the right to payment in cash under the Fundamental Law refers to payments executed in the legal tender of Hungary. If and when the euro is introduced as Hungary’s legal tender, the amendment to the Fundamental Law, in the light of its objective and content, would establish legal rules governing the status of legal tender of euro banknotes, which is an area of exclusive competence of the Union under Article 133 of the Treaty for Member States whose currency is the euro. 3.2 The concept of ‘legal tender’ as a means of payment denominated in a currency unit has been considered by the Court of Justice of the European Union. In particular, the Court of Justice has

39 See paragraph 2.3 of Opinion CON/2024/3.

40 See paragraph 2.3 of Opinion CON/2024/3, paragraph 2.3 of Opinion CON/2024/19, paragraph 2.4 of Opinion CON/2024/22 and paragraph 3.2 of Opinion CON/2025/8.

41 See paragraph 1.2 of Opinion CON/2023/31, paragraph 2.2 of Opinion CON/2024/3 and paragraphs 2.3 and 2.7 of Opinion CON/2024/19.

42 See paragraph 2.4 of Opinion CON/2024/19.

43 See paragraph 2.5 of Opinion CON/2024/19.

44 See paragraph 3.2.3 of Opinion CON/2024/1 and paragraph 3.2.3 of Opinion CON/2024/26. clarified that the concept of ‘legal tender’ signifies that this specific means of payment cannot generally be refused in settlement of a debt denominated in the same currency unit, at its full face value, with the effect of discharging the debt. In clarifying the concept of ‘legal tender’ under Union law, the Court of Justice took into consideration Commission Recommendation 2010/191/EU , which provides useful guidance for the interpretation of the relevant provisions of Union law. Point 1 of Recommendation 2010/191/EU states that, where a payment obligation exists, the legal tender of euro banknotes and coins should imply (a) mandatory acceptance of those banknotes and coins; (b) their acceptance at full face value; and (c) their power to discharge from payment obligations. According to the Court of Justice, this shows that the concept of ‘legal tender’ encompasses, inter alia, an obligation in principle to accept banknotes and coins denominated in euro for payment purposes . 3.3 The Court of Justice has clarified that the concept of ‘legal tender’ is a concept of Union law that must be given an autonomous and uniform interpretation throughout the Union . Insofar as it allows the Union legislature to lay down the measures necessary for the use of the euro as the single currency, the Court of Justice clarified that Article 133 of the Treaty empowers the Union legislature alone to specify the legal rules governing the status of legal tender accorded to banknotes and coins denominated in euro, insofar as that is necessary for the use of the euro as the single currency. Furthermore, the Union legislature’s exclusive competence precludes any competence on the part of the Member States in the matter, unless they have been empowered by the Union to do so or for the implementation of Union acts . In this respect, the ECB notes that on 28 June 2023 the Commission published a proposal for a regulation of the European Parliament and of the Council on the legal tender of euro banknotes and coins (hereinafter the ‘proposed regulation on the legal tender of euro cash’), which will establish rules on the legal tender of euro banknotes and coins in binding Union secondary law . The explanatory memorandum accompanying the proposed regulation on the legal tender of euro cash states that discussions within the Euro Legal Tender Expert Group (ELTEG) confirmed the existence of uncertainty and important differences regarding the practical application of the concept of legal tender across the euro area . These differences would justify establishing rules on the legal tender of euro cash in a regulation adopted under Article 133 of the Treaty. 3.4 Taking account of the foregoing, the ECB invites the Hungarian authorities, if and when the euro is adopted in Hungary, to guarantee that the right to make payments in cash will be amended to merely refer to the relevant provisions of Union law .

45 Commission Recommendation of 22 March 2010 on the scope and effects of legal tender of euro banknotes and coins (OJ L 83, 30.3.2010, p. 70, ELI: https://eur-lex.europa.eu/eli/reco/2010/191/oj).

46 See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk, C-422/19 and C-423/19, ECLI:EU:C:2021:63, paragraphs 46 to 49.

47 See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk, C-422/19 and C-423/19, ECLI:EU:C:2021:63, paragraph 45.

48 See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk, C-422/19 and C-423/19, ECLI:EU:C:2021:63, paragraphs 50 to 52.

49 COM(2023) 364 final. For the ECB opinion on the proposal, see Opinion CON/2023/31.

50 See section 3, page 4 of the explanatory memorandum accompanying the proposed regulation on the legal tender of euro cash and the final report of the Euro Legal Tender Expert Group (ELTEG) of 6 July 2022, available on the Commission’s website at https://commission.europa.eu/index_en. See also Opinion CON/2023/31.

51 See paragraph 3.3.3 of Opinion CON/2024/1 and paragraph 3.2.6 of Opinion CON/2024/26. This opinion will be published on EUR-Lex. Done at Frankfurt am Main, 25 June 2025. [signed] The President of the ECB Christine LAGARDE