Denada Jushi
In July 2025, Prime Minister Edi Rama vowed that by 2030 there would be no more "cash in hand" in the country, promising the disappearance of cash in the economy.
But the question that naturally arises is: how feasible is this initiative?
Is Albania ready?
ACQJ contacted three citizens of different ages and professions in the capital.
DK is 27 years old, with a hairdressing business in the Paris Commune area, and tells us that almost all of her business's income comes through online payments, a practice she initiated herself because she doesn't want to keep money in the work environment.
"I pay everything online, from bills, to rent, to utilities, so I didn't have to continue paying in cash. Customers are now used to it; almost 90% know that it is paid online."
Meanwhile, BM, 51, a restaurant owner near the Supreme Court, says that Albanian customers always pay in cash, while foreigners, mainly tourists, pay through online applications or cards.
Meanwhile, PK, 69, says he has no idea how online payments are made.
"I don't understand these applications much, my son usually helps me with e-Albania."
This is a look at how this goal has been received by citizens. In the meantime, what do experts say? What are the challenges and advantages of this initiative?
Prof. Dr. Elvin Meka, who is the vice-rector and dean of the Faculty of Business and Law at Tirana Business University, tells us that the goal is still far from what Albania has today's realistic capacity to cope with.
"Albania is preparing and working to face and manage such a challenge, which it must be said is extremely complex and difficult in many aspects."
For economic expert Erinda Myqelefi, this initiative already has a development that seems:
“In the first quarter of 2025 alone, card usage has increased by 30%,” indicating that younger generations are increasingly choosing digital payments.
The shift from physical cash to digital payments brings a number of benefits; for example, for the government it means more control and less tax evasion.
“Transactions become traceable and documented, increasing tax revenues,” Meka explains.
For citizens and businesses, the main benefit is reduced costs and increased efficiency. Payments become faster, more secure, and the risk of counterfeit money is avoided.
Myqelefi sums this up in a simple sentence:
“The main advantage is the time savings.”
She adds that using cards and banking apps reduces the risk of physical theft and eliminates the need to carry cash. For merchants, this translates into less risk from cash management and more financial security.
Digitalization paves the way for innovation and economic development.
“New opportunities are being created for investment and employment in the technology sector,” Mr. Meka tells us.
But this is only one side of the coin, the positive one. As in any evolution, with the benefits come the risks.
One of the biggest risks is the financial exclusion of vulnerable groups, experts say in unison.
"The elderly have difficulty using technology and lack trust in the digital system," explains Myqelefi.
Even Mecca considers this a major problem.
“There is a risk that a portion of citizens will be 'excluded' from the financial system, creating huge social costs.”
Another concern is related to the total dependence on technology. In a completely digital system, any technical problem, from internet outages to cyberattacks, can paralyze the entire economic system. This alarm has been worldwide in recent months: what happens if the digital world collapses?
Another element that has been the subject of great discussion since the beginning of time is security and privacy.
According to Elvin Meka, the main challenge is cybersecurity.
This sector requires large investments to protect the system from attacks and fraud.
Myqelefi gives a concrete example:
“Individuals are falling prey to scams via text messages and giving out their banking details,” a phenomenon that has become increasingly widespread.
While lawyer Ili Gërdupi goes even further, explaining that eliminating cash is impossible.
Why?
"The European Court of Human Rights in Strasbourg has considered money as property and, as such, has made it part of the protection of the Convention in terms of human rights. Restrictions that can be imposed by the state cannot be equated with 'expropriation', so any rule that would completely restrict the use of cash would be in violation of human rights," says Gërdupi.
He also warns about the risk of data misuse:
"Digital transactions create a detailed financial trail, which can be used not only by the state, but also by other actors."
Consumer protection: Who is responsible?
In a digital system, consumer protection becomes essential. According to Gërdupi, responsibility lies with both the individual and institutions.
If the data leak occurs through the fault of the citizen, he or she is held responsible. But if institutions do not implement security protocols, they face severe penalties.
This means that as technology advances, individual responsibility must also increase. Citizens must be more aware of their digital security, while institutions must guarantee high standards of protection.
The European Union has followed a gradual and well-managed approach. Elvin Meka mentions some of the main steps, starting from the creation of the SEPA system, which facilitates electronic payments across Europe, to the PSD2 directive, which increases competition and opens the market to fintechs, as well as the GDPR, which sets strong standards for data protection.
At the same time, discussions are also underway in Europe about the creation of a digital euro, a step that could completely transform the financial system.
But this is still only in the first discussions.
What's different from Albania is that European countries have invested in financial education and infrastructure for years. This has gradually helped European citizens.
Experts agree on one point: this transition cannot be immediate nor forced.
"A transitional period and support measures for vulnerable groups are needed," says lawyer Gerdupi.
While Myqelefi suggests education programs and facilities for vulnerable categories, Meka warns that, without addressing the problems comprehensively, the risk of exclusion and insecurity remains high.
ACQJ also reached out to the Bank of Albania to get a look at how close Albania really is to a cashless economy and whether it has a concrete plan for this transition.
We also asked about the methods being designed to protect and manage this process.
But we still haven't received an answer.
What is striking is that banks themselves are feeling the competition of digitalization. We already have the first 100% digital bank in Albania, Jet Bank, which is challenging traditional banks with the motto that it saves time and costs.
So, in all this perspective, the conclusion that emerges is that the government's goal of going cashless by 2030 seems more rhetorical than a possible achievement.
Digital banking will most likely take years in Albania to achieve the expectations or goals that the Albanian government has today./acqj.al
