Cash

Money, in any of its forms (commodity, representative or fiat money), has three functions: it is a medium of exchange, i.e., a means of payment with a value on which people rely; it is a unit of account that expresses the price of goods and services; and it is a store of value. Contemporary economies use fiat money, which is currency that has been declared legal tender and is issued by a central bank. The concept of cash embraces banknotes and coins in circulation.

The share of digital payments in Argentina is growing rapidly. The BCRA has boosted this trend through innovative and high-impact measures and programs.

As the digitalization of payments continues, the BCRA has put into circulation higher denomination banknotes and coins that will improve the payment experience, the operation of ATMs, and the distribution of cash. These banknotes are part of the series “Argentina’s Native Fauna” and “Heroines and Heroes of the Nation.” Likewise, and in response to the demand from financial institutions and individuals, new coins have been issued, which are part of the series “Argentina’s Native Trees.”

Moreover, the BCRA has adopted several measures to improve the usefulness and quality of banknotes and coins in circulation, such as the development of a destruction plan for worn-out banknotes and the creation of a market where financial institutions can offer their cash surplus or cover their cash needs without the BCRA’s participation. This mechanism is not only more efficient for the system as a whole but it also generates significant savings for the BCRA, as it is financial institutions that deliver their excess banknotes/coins and get any banknotes/coins they may need by themselves.