France’s Justice Minister Proposes Cash Ban to Fight Crime, Faces Privacy Backlash

By Staff, Agencies

French Justice Minister Gerald Darmanin has proposed a complete ban on cash transactions in France, arguing that digital payments, including cryptocurrencies, are easier to track and would help authorities combat drug trafficking and other forms of organized crime.

Speaking before a Senate commission, Darmanin stated that cash is central to “a large part of daily delinquency and even criminal networks,” and claimed that ending its use would hinder the creation of drug dealing hubs. While acknowledging that this move wouldn't completely eliminate criminal activity, he emphasized that once money becomes traceable, it becomes more difficult for both consumers and dealers to evade financial scrutiny.

Darmanin, who formerly served as Minister of Public Action and Accounts, conceded that criminal groups would likely turn to cryptocurrencies if cash were banned. However, he argued this would still be a net positive, noting that “crypto is often easier to trace” due to blockchain transparency and new European Union rules.

Under a forthcoming European Council directive, crypto asset providers will be required to collect and share sender and recipient data with tax authorities, effectively eliminating anonymous crypto transfers across the EU.

The proposal is expected to face significant opposition from the French public. According to a 2024 survey by the Banque de France, while 62% of respondents primarily use cards for payments, 60% still consider access to cash “important or very important.” Anonymity, immediate settlement, and better control over personal spending were among the main reasons cited for preferring physical money.

Critics warn that eliminating cash could raise serious concerns over financial surveillance and personal freedoms. Darmanin acknowledged these concerns but argued that the dangers posed by illicit cash circulation are even greater. “It is good that we monitor notaries, banks, and real estate,” he said, “but it’s time we look at parallel cash circuits that bypass the formal economy altogether.”

France has already implemented strict rules on cash use: payments over €1,000 to professional entities are prohibited unless the payer lacks access to a bank account. For private transactions, the cap is €1,500 unless a written agreement is signed with full identification details.

At the EU level, a new directive will set a €10,000 cap on cash transactions starting in 2027, aiming to eliminate loopholes that criminal networks currently exploit to move large sums anonymously.

While the move may aid law enforcement, it sets the stage for an intense debate over the future of financial privacy and individual liberties in the digital age.