In Poland, settlements in cash are widespread and used far more frequently than in the developed countries. The above leads to a number of negative consequences, among others, it creates favourable conditions for the practice of counterfeiting money. The aim of the article is to present the significance and volume of cash share in the domestic money circulation and settlements made by people, as well as the scale of banknotes counterfeiting practice.

Poles are still very much used to the in its conventional form of money and are reluctant to accept non-cash settlement forms. In Poland, cash is used for a vast majority of transactions made by individual persons, not only while doing everyday shopping, but sometimes for an investment, such as purchasing a car or a flat. Cash settlements also prevail in a very important money settlements market segment, i.e. mass payments. The share of notes and coins (with the exclusion of vault cash) in M1 money supply in Poland stands at a level several times smaller than in most EU countries.

An increase in the volume and value of money in cash in the domestic circulation recorded in recent years creates favourable conditions for counterfeiting money. The lesser the knowledge of people about their own currency and the lesser their ability to recognise a counterfeit piece, the easier it is for this practice to develop. According to the results of the survey conducted by the authors, respondents appreciate the aesthetic quality and workmanship of the Polish notes but indicate that their practical knowledge about the currency is insufficient which reduces the safety of using the currency and makes counterfeiting money easier.

Despite rather tough laws it has been impossible to limit the money counterfeiting practices in Poland and limit its introduction into circulation. On the other hand, the quality of counterfeit money is ever higher. To change this it is necessary, among others, to raise the knowledge about the appearance and security features of the Polish currency (i.a. through educational campaigns), change procedures in cases of receiving counterfeit money and promote and disseminate, in a more determined way, non-cash payment forms.