Physical currency refers to tangible forms of money, such as coins and banknotes, that are used for transactions. It is issued by governments and central banks, representing a standard unit of value within an economy. People use physical currency to buy goods and services, making it a fundamental part of everyday commerce. Unlike digital currency, which exists only in electronic form, physical currency can be held and exchanged directly. It is often used in situations where electronic payment methods are not available or preferred. Examples of physical currency include the U.S. dollar, Euro, and Japanese yen.