cash

Cash refers to money in the form of physical currency: banknotes and coins issued by a country's central bank or monetary authority. It is a widely accepted medium of exchange, a unit of account, and a store of value for everyday transactions. Cash is legal tender in most jurisdictions for settling debts and payments within the accepted denominations.

Banknotes are printed or minted with security features such as watermarks, holograms, and serial numbers to deter counterfeiting. Coins vary in metal composition and denomination. Together, banknotes and coins provide high liquidity and portability, enabling near-instant payment without a bank account or digital device.

Historically, cash replaced commodity money and later evolved into fiat currency backed by government decree rather than a physical commodity. In modern economies, central banks manage cash supply and oversee security features, production, and distribution through national mints and banking networks. Counterfeiting remains a persistent risk, prompting ongoing design updates and law enforcement measures.

Usage and considerations: Cash offers privacy, low transaction costs for small payments, and universal acceptance in many retail settings, but it can be lost or stolen and incurs handling costs. It may be less convenient for large transactions and can be damaged or worn. Banks and merchants manage cash liquidity, while cash usage interacts with monetary policy, financial inclusion, and the broader shift toward electronic payments.

Worldwide, the share of transactions conducted with cash varies. In many high-income countries, cash usage has declined with the growth of cards, mobile payments, and other digital methods, though cash remains common in retail, informal sectors, and regions with limited banking access. Cash is a fundamental, physical form of money, even as digital alternatives expand.