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+--- Thread: U.S. moves to phase out currency (/showthread.php?tid=1100)
U.S. moves to phase out currency - dmcowen674 - 02-18-2016
2-17-2016
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[url=https://www.yahoo.com/finance/news/why-100-bills-500-notes-113131296.html]Why $100 bills and €500 notes may soon be killed off
Former Secretary of the Treasury Lawrence H. Summers has called for the $100 bill's execution, just as the Financial Times reported that the European Central Bank is planning on killing another big bill overseas, the €500.
In an op-ed for the Washington Post, Summers cites a new study from Harvard's Kennedy school by banker Peter Sands—he's President Emeritus of Harvard—that made a strong case for the elimination of the £50, the €500, the Swiss CHF 1,000, as well as the $100 because large currency notes such as these are the "preferred payment mechanism of those pursuing illicit activities, given the anonymity and lack of transaction record they offer, and the relative ease with which they can be transported and moved."
This is apparently an enormous problem. According to the study, only 1% of shady transactions are seized by authorities, and this has a massive effect on the world by way of tax evasion, corruption, terrorism, and garden-variety money laundering for criminal enterprise. The dubious use of high-denomination bills has actually even earned the €500 note a nickname: the "Bin Laden."
Insider-finance blog ZeroHedge takes a more cynical view of the authorities distaste for the €500, claiming the real reason for killing the note is to remove a significant amount of cash from the economy.
RE: U.S. moves to phase out currency - dmcowen674 - 02-18-2016
I'm always amazed when see people pull wads of $100 bills out of their pockets paying for gas at the gas convenience store.
RE: U.S. moves to phase out currency - BoFox - 02-18-2016
This will just backfire by further fueling another boom in the bitcoin/cybercurrency economy.