When hurricanes and other natural disasters strike, they expose the limits of digital finance and emphasize the importance of cash. While mobile apps like Venmo, Bitcoin wallets, and contactless payments have made financial transactions more convenient, these systems collapse when power and internet infrastructure are destroyed. In such emergencies, survival depends on basic necessities — food, water, and shelter — which often require cash to access.
This reality forces us to reconsider how prepared our financial systems are for natural disasters and highlights the need for better infrastructure and disaster readiness.
When Digital Finance Fails in Disaster Zones
In 2024, the Pew Research Center found that 72% of Americans experienced extreme weather, illustrating just how common natural disasters have become. The Federal Emergency Management Agency (FEMA) has already issued 81 major disaster declarations this year — double the number from two years ago.
One stark example of this vulnerability was Hurricane Helene, a Category 4 storm that hit the Appalachian region with unprecedented force. Floods and power outages from the storm devastated entire communities, cutting off access to electricity, cell phone service, and the internet. With digital payment systems down, residents couldn’t transfer money, buy essentials, or use online banking services. Even FedNow’s instant payment services were rendered useless as banks in the area were flooded or forced to close.
The impact was especially severe for Appalachia, where internet access is already unreliable. Many households in the region have limited broadband, leaving them more vulnerable to disruptions. Without the ability to rely on financial apps or bank services, cash became the only lifeline for people trying to buy food and supplies or rebuild their lives.
Why Cash Remains Essential During Crises
Disaster relief organizations stress that cash offers unmatched flexibility during emergencies. Donations in cash can be spent immediately on essential items, unlike digital funds, which may be delayed by system outages. Moreover, cash helps local businesses resume operations faster by directly injecting funds into local economies. When communities can spend locally, the path to recovery becomes more manageable.
Natural disasters don’t just take a toll physically and emotionally; they also disrupt economies. When banks shut down and digital payments fail, the financial impact is swift and severe. Hurricane Helene made it clear that relying solely on fintech is risky in regions prone to severe weather.
