Not exactly true. In Italy payments over 12,500 cannot happen in cash (even though believe me they DO all the time - the biggest sector they happen in is in real estate. People routinely pay cash to get work done on their house, thus avoiding not only the 20% Italian VAT, but they avoid bureaucracy, permits etc.).

However, if you have money in the bank of course you can go and withdraw your 12,500 or 50,000 or whatever you want in cash. If it's 12,500 or over it will be registered and a 'red flag' of some sort will be sent electronically to the Italian equivalent of the IRS (Agenzia delle Entrate). I believe the bank may also have to ask what is the purpose of the money (to send the info to the Agenzia delle Entrate), only if the amount is over 12,500.