Physical cash refers to tangible forms of money, such as coins and banknotes, that people use for everyday transactions. It is issued by governments and central banks, representing a legal tender that can be exchanged for goods and services. Physical cash is widely accepted and provides a straightforward way to conduct financial exchanges without the need for technology.
Despite the rise of digital payment methods, physical cash remains important in many economies. It offers privacy and security, as transactions do not require personal information. Additionally, physical cash can be essential in areas with limited access to banking services or technology, ensuring that everyone can participate in the economy.