Cashgeld

Cashgeld is a term used in German-speaking contexts to refer to physical money, namely coins and banknotes, that are used directly in everyday transactions. Unlike digital or electronic forms of payment, cashgeld exists in tangible form and is generally accepted by merchants as a medium of exchange. In many regions it is also called Bargeld, though Cashgeld is more common in some legal texts and media usage.

Issuance and status: Cashgeld is issued by a central bank or national monetary authority. Coins are typically minted by a national mint and banknotes printed by the central bank. Depending on the jurisdiction, Cashgeld may have legal tender status, meaning it must be accepted to settle public or private debts to the full value of the notes and coins.

Composition and features: Cashgeld comprises universally recognized denominations, with security features such as watermarks, microprinting and holograms to prevent counterfeiting. It is portable, divisible, durable and fungible, which makes it suitable for transactions of varying size and for use by people without access to digital payment methods.

Role and trends: Cash serves as a fast, universally available means of payment and as a store of value. It plays a significant role in retail, vending, and small-scale transactions, and it remains important for privacy and in locations with limited electronic infrastructure. In many economies the share of cash payments has declined as digital payments grow, though cash remains widely used.

Limitations and policy considerations: Cash handling incurs costs for banks and merchants and can be susceptible to theft or counterfeiting. Cash policies—such as limits on large notes or encouraging cashless payments—vary by country and can affect financial inclusion, monetary policy transmission, and the resilience of payment systems during outages.