Legal tender

Bitcoin became legal tender in El Salvador in September 2021. Since then, its volatility has worsened the country's precarious financial situation.

A new bill would preserve the right of Americans to pay cash and would prevent merchants from rejecting it. It is gaining bipartisan support in Congress.

Glitches marred the adoption of bitcoin as legal tender in El Salvador, causing anger and anxiety to customers and retailers.

New legislation in Spain protects freedom of payment choice and guarantees consumer rights by allowing consumers to pay with cash anytime and everywhere.

El Salvador has become the first country to make bitcoin legal tender, hoping to increase financial inclusion. Critics fear it will become a vigilance tool for the government.

The bi-partisan bill would prohibit businesses and retailers from refusing to accept cash from consumers for in-person, brick-and-mortar retail purchases.

The People’s Bank of China tells merchants to accept cash or face sanctions in the wake of a widening digital divide. The rapid transition to digital payments is leaving some behind and creating “gaps of digitalization”.

A case before the top European Court could have important implications for the status of banknotes and coins as legal tender and the acceptance of cash. In this second part, we analyse the link between legal tender and the exercise of fundamental rights. We also look at the implications of legal tender for a central bank digital currency (CBDC).

A case before the top European Court could have important implications for the status of banknotes and coins as legal tender and the acceptance of cash. The Advocate General issued a preliminary advisory opinion which states that creditors have an obligation in principle to accept cash in euros for the payment of monetary debts.

Riksbank governor calls for stronger legal protection for cash. The Central Bank recommends to review the concept of legal tender. “If it were to be established by law that one was forced to accept cash in Sweden, more of us would probably choose to have cash in our wallets.” says Ingves.

On 24 September 2020, the Commission adopted a retail payments strategy for the EU that aims to further develop the European payments market so Europe can fully reap the benefits of innovation and opportunities that come with digitalisation. Maintaining the availability of central bank money is a core element of the strategy.

A case currently being heard in Europe’s top court could have a major bearing on the future of banknotes in the region. The case asks the court to define the term ‘legal tender’. The judgement will be delivered in the Autumn.