In Germany, a bunch of keys is the "national standard" instead of a "digital door lock." After finishing a meal at a restaurant, you must pass a test of patience before receiving the bill, only for the waiter to slowly approach and ask, "Cash or card?"
According to a survey by the Bundesbank, Germany's cash payment share still stands at 45%. Although non-cash payments exceeded half for the first time, Germany remains one of Europe's most cash-preferring countries. There are historical reasons behind this. The "hyperinflation" that swept Germany in the early 1920s after World War I left behind a wariness toward the national financial system. Added to this, as a reaction against the Nazi surveillance regime, a culture that values privacy protection developed, making cash a symbol of anonymity and autonomy. Card fees higher than those in Nordic countries are also cited as a reason cash use persists.
German caution also appears in attitudes toward digital technology. Stability comes before convenience. They first ask what happens if a fire causes electronic devices to malfunction, and who will be responsible if personal information is leaked. A culture has formed that examines the risks of new technology before its efficiency. The problem is that this prudence has resulted in slowing the pace of digital transformation.
Recently, however, Germany has been changing. The Friedrich Merz government, which took office in 2025, has defined digital transformation as a key means of economic recovery and embarked on reform. For the first time ever, it established the Federal Ministry for Digital Transformation and State Modernization. The idea is to consolidate digital policy, which had been scattered across the transport, economy, and interior ministries, into one body to enhance momentum. Looking at the contents of the reform plan, the first pillar is administrative digitalization. German business circles have long pointed to complex licensing procedures and paperwork administration as causes of declining competitiveness. The Merz government aims to integrate all administrative procedures, from company formation to tax filing, into a digital platform and shorten processing times.
The second is building digital infrastructure. The German government operates the "Federal Gigabit Infrastructure Support Program" to expand the nationwide fiber-optic network, investing more than 22 billion euros. In particular, it is expanding high-speed internet networks centered on rural areas and small towns, where investment has been low due to lack of economic viability. In addition, it is building digital economic infrastructure by simultaneously establishing a nationwide 5G network and developing 6G technology.
The third is strengthening artificial intelligence (AI) competitiveness. The Merz government has set the goal of nurturing Germany into Europe's largest AI computing infrastructure hub. To this end, it is supporting the expansion of large-scale data centers and high-performance computing (HPC) facilities, and is actively promoting expanded AI use on manufacturing sites. The idea is to apply AI to Germany's flagship industries such as automobiles, machinery, and chemicals to boost productivity and secure Europe's technological sovereignty.
Of course, there is a long way to go. Privacy protection regulations remain strict, and the on-the-ground perception of digital administration is still low. But what matters is the direction. Germany has been a society that asked about technological stability first, but it has now begun to consider national competitiveness. Once digital reform takes off in earnest, fiber-optic networks, data centers, and AI infrastructure are likely to spread across Europe. A country that insisted on cash has now begun to talk about AI. The new demand created by this change will, for the time being, translate into an opportunity for Korea's semiconductor industry and export ecosystem.
