glossario

This terms refers to euro banknotes and coins. By using banknotes and coins to make a payment, buyers free themselves of any payment obligation towards sellers. Cash is said to have the power to extinguish a debt and this characteristic is conferred by law. This is why cash is referred to as 'legal tender' and no one can refuse to accept it as payment. There are two exceptions to this general principle:

• in Italy, cash cannot be used to pay sums equal to or above €2,000, except in certain cases, such as money transfers and cash-for-gold;
• coins have limited power to extinguish a debt: in the euro area no party is obliged to accept more coins than the amount that equals the exact value of payment.