The European Central Bank has ordered national central banks, including the Banco de España, to cease printing 500-euro notes.
One of the reasons for this is that cash is being used less and another is to curtail money laundering activity.
In the case of the former, although cash is a long way from being phased out, it is true that more and more people are paying with cards or transfer platforms using smart phones and watches.
The fact is that during 2022 paper money sank to its historic minimum at 13.1m notes in circulation, which is close to the 12.7 new notes printed in 2002.
As the 500-euro note is the largest denomination, it is the least used; people prefer to use smaller denomination notes and use internet & bankcards for larger transactions. You can’t pay for anything in cash over 1,000 euros anyway.
Obviously when it comes to exchanging large sums of money illicitly, the 500-euro note – or Bin Laden, as it is known, was the chosen method.
But all this does not mean that these large notes are not legal tender or will cease to circulate; possessing them is not illegal.
(News/Noticias: Spain)
Julie: I agree; use cash or loose it. Trouble is that younger generations fart around with smart watches and phone-pay apps. I fear that cash will disappear along with my generation.
It’s not really about money laundering primarily Martin, it’s about digital control
about how people spend their hard owned money.
I’ve heard some restaurants in Alumunecar will only accept cash. Good on them.
If you don’t use cash, central banks eventually will outlaw it.
PAY CASH and help local businesses.
CHF 1000 is still in use, so not too sure if this will achieve it’s objective