If you ever have visited Europe, you will be frowned upon if you try to pay with a 500 euro notes. In fact many shops, supermarkets refuse to take them since a long time. It is a stigma to use them and it is thought that they are used by criminals. While the notes are absolute legal and favorate mean of cash by tourists (light and practical to hide), in EU people are free to refuse whatever notes they dislike apparently (this should not be the case and should be prohibited by law, but read further to know why it is being encouraged).
Now I would accept that justification if it were only the 500 notes. But, suddenly, the 200 euro notes are being stigmatized and refused by many stores as well. Worse, in some EU countries, it is not allowed to use cash (regardless of the bank note size) at all for purchases more than say 5000 EUR. They are limiting cash use.
Recently, starting 2019 precisely, the 500 notes wont be used any more and will be taken out from circulation gradually. I bet 200 notes will face the same fate soon.
I guess you have started to know the ultimate goal of EU and governments around the world: abolishing cash and switching to digital payments/transactions (credit cards, wire transfers...)
By stigmatizing bank notes, they actually aim to remove cash. Why?
If your bank pays you no interest rate or worse imposes fees for services and accounts (negative interest rate), then you can take your money in cash (that is what the majority has done) and keep it safe somewhere. If there is no cash anymore, you have no other risk free choice (of course you can invest in stocks... and take the risk). By eliminating cash money, people are forced to use banks services even if they end up getting zero or negative interest rates.
"Cash is king, awaiting its inevitable checkmate"
-Deserialization
Now I would accept that justification if it were only the 500 notes. But, suddenly, the 200 euro notes are being stigmatized and refused by many stores as well. Worse, in some EU countries, it is not allowed to use cash (regardless of the bank note size) at all for purchases more than say 5000 EUR. They are limiting cash use.
Recently, starting 2019 precisely, the 500 notes wont be used any more and will be taken out from circulation gradually. I bet 200 notes will face the same fate soon.
I guess you have started to know the ultimate goal of EU and governments around the world: abolishing cash and switching to digital payments/transactions (credit cards, wire transfers...)
By stigmatizing bank notes, they actually aim to remove cash. Why?
If your bank pays you no interest rate or worse imposes fees for services and accounts (negative interest rate), then you can take your money in cash (that is what the majority has done) and keep it safe somewhere. If there is no cash anymore, you have no other risk free choice (of course you can invest in stocks... and take the risk). By eliminating cash money, people are forced to use banks services even if they end up getting zero or negative interest rates.
"Cash is king, awaiting its inevitable checkmate"
-Deserialization
