How realistic is the idea of a Cash-Free Albania by the end of the decade?

In recent years, the idea of a cash-free Albania has gained significant attention, closely tied to the country’s process of European Union integration and the modernization of its financial system. However, while the vision sounds promising, the reality is far more complex and filled with challenges that cannot be ignored.

One of the main barriers remains the citizens’ preference for cash and deep-rooted cultural habits.

Many people, especially in rural areas lack the habit or trust in using cards or payment applications, making the transition to digital a gradual, rather than immediate, process.

This phenomenon is not unique to Albania; other countries in the Western Balkans, such as North Macedonia and Montenegro, face similar obstacles, where a large share of small business transactions still take place in cash, despite the existence of digital infrastructures.

Historical and structural challenges are equally concerning. Albania emerged from the communist period with a weak financial system, and the development of a modern banking infrastructure happened slowly. ATMs only became widespread two decades ago, while online banking services remain limited in reach for many citizens and businesses, especially in peripheral areas of the country.

A considerable part of the economy remains informal, particularly in the agricultural sector, and many remittances from abroad do not pass through official financial channels.

Without addressing these issues, a fully digital economy within a decade appears highly challenging to achieve.

Cybersecurity adds another layer of concern. The cyberattacks against government institutions in recent years have clearly shown that the system remains vulnerable. Even the most advanced digital economies, such as Sweden and Norway, maintain a minimal level of cash circulation for safety and emergency purposes.

If Albania moves too quickly toward a 100% digital economy without a strong protective infrastructure, the risk of cyberattacks and systemic failures is very high—something that must be taken seriously.

Small businesses and local suppliers also face practical challenges. Most rural traders operate entirely in cash, and the lack of an inclusive digital network could push them out of the market.

This issue is not uniquely Albanian, as in many Eastern European countries, the transition toward a digital economy has always been gradual, requiring education and inclusion of small businesses before large-scale digital payments can be established.

Estonia, for instance, began by educating its population and building secure cyber infrastructure before promoting online payments, ensuring a stable and trustworthy foundation.

On the other hand, there are positive indicators.

The number of electronic transactions in Albania has increased significantly from around 2 transactions per capita a decade ago to roughly 10 times that number today.
However, this is still far from EU standards, where digital transactions per capita exceed 300 annually. The integration of international payment systems such as Stripe and PayPal remains limited for most local businesses, hindering the growth of online trade.

Taking these challenges into account, how realistic is the idea of a cash-free Albania by the end of the decade?

From a realistic perspective, achieving 100% digitalization within ten years seems beyond reach.

Without substantial investments in infrastructure, financial and digital education, cybersecurity, and legal support, and without a gradual shift in the culture of cash use, a completely cashless economy would be difficult, and potentially risky to achieve.

What is both possible and attainable is a gradual transition, where citizens and businesses are given time to adapt and adopt electronic payments, maintaining a sustainable balance between cash and digital systems.

To achieve this, Albania must build a secure digital infrastructure, integrate POS terminals and mobile applications for small and medium enterprises, promote inclusive education on card usage and online safety, invest in cybersecurity and contingency planning, and introduce legislation and fiscal incentives to encourage the use of electronic payments.

Gradual transition, regional pilot projects, and the integration of remittances are key steps toward a successful shift to a digital economy without endangering economic stability or public trust.

In conclusion, the ambition for a cashless Albania is valuable and desirable, but reality demands patience, gradual strategy, and sustainable investment.
Achieving 100% digitalization within a decade is unrealistic.
What can be achieved, however, is steady and sustainable progress toward digitalization, maintaining a healthy balance between traditional methods and modern technologies.