The euro became a physical currency in 2002, when euro banknotes and coins entered circulation on 1 January.
The euro had already existed in non-cash form since 1 January 1999. Banks, financial markets, electronic transfers, and government accounts could use it, while national notes and coins—such as the German mark, French franc, and Italian lira—remained in everyday use.
The cash changeover began in the 12 original euro-area countries on New Year’s Day 2002. The new notes and coins gradually replaced national currencies during a short dual-circulation period, which generally ended by 28 February 2002.
A common mix-up is 1999, the year the euro was launched as an accounting and financial currency. The question asks when people could physically pay with euro cash, making 2002 the canonical answer. The euro’s eight coin denominations range from 1 cent to €2.