Following a massive power outage in Spain and Portugal, banking and electronic payment services have been restored.
Restoration of electronic payments
Electronic payments using bank cards and ATM services are once again available to residents of Spain and Portugal after a significant power outage on Monday. The Bank of Spain confirmed that "wholesale and retail payments are functioning regularly." The restoration is reported to be nearly complete, although minor issues remain in some bank branches and ATMs.
Economic impact of the blackout
The blackout, marking the largest in the region's history, affected millions across Spain, Portugal, and parts of Southern France. Spain's economic losses are expected to reach 0.1% of GDP, equivalent to around €1.6 billion. Beyond financial losses, the blackout also impacted essential services, including public transport and healthcare institutions.
Return to cash payments
During the blackout, many stores closed, and those that remained open primarily accepted cash. Spaniards who had cash on hand were able to make purchases, while others found themselves unable to buy essential items. The Spanish government has been advocating for reduced cash usage in a bid to combat tax evasion, introducing limits on cash transactions.
The restoration of banking services in Spain underscores the importance of cash in times of crisis, despite ongoing efforts to transition to cashless payments.
