The resilience of legal tender: a comparative study of mandatory cash acceptance in selected developed economies

Abstract

This paper examines the emerging legislative trend of mandatory cash acceptance as a tool to preserve the functional role of legal tender - cash in modern payment systems. Through a comparative analysis of selected developed economies, the study explores how different jurisdictions approach the obligation to accept cash and to what extent such obligations strengthen the resilience of legal tender. Attention is paid to the relationship between the formal status of legal tender and its actual acceptability in practice. The paper argues that legal tender status alone is insufficient to ensure widespread usage, and that explicit legal frameworks mandating acceptance play a crucial role in maintaining financial inclusion, trust in central bank money, and the overall stability of payment systems.