Hotovost

Hotovost is the term used in Czech and related contexts to refer to cash—the physical currency consisting of banknotes and coins that circulates as legal tender. It represents money that can be exchanged immediately for goods and services and does not require electronic settlement or a bank account.

Hotovost is issued by a country’s central bank or monetary authority. Banknotes and coins carry security features and are issued in defined denominations. As legal tender, hotovost must be accepted for most payments within a jurisdiction, making it a foundational form of money alongside electronic payment methods.

In daily life, hotovost remains widely used for small purchases, informal transactions, and in areas with limited access to digital infrastructure. It offers immediate settlement and a degree of privacy, but it also carries risks such as loss, theft, and the possibility of counterfeiting. Merchants face handling costs and the need for secure storage and daily cash reconciliation.

Economic trends have seen a shift toward digital payments in many regions, yet hotovost continues to play a crucial role, particularly where electronic systems are unavailable or inconvenient. National laws regulate cash issuance, legal tender status, and anti-counterfeiting measures, while central banks monitor supply, security features, and resilience of the cash system. In the broader context, hotovost coexists with electronic payments and, in some cases, with central bank digital currencies that explore new forms of monetary settlement.