Central planning, and the erosion of personal freedom – the European Central Bank’s governing council will meet to decide the fate of the €500 note. Prepare the bonfires. It does not look promising for the violet coloured bank note that the press has dubbed the “Bin Laden”.
The vilification of cash begins with the suggestion that only criminals, terrorists, drug dealers – basically anyone with something to hide – use it, especially the big bills. The ECB reckons that the €500 note accounts for just 3% of bills in circulation but 28% of the total value. The Germans are said to be particularly fond of the large denomination notes.
Does that make the Germans criminals by association?
Surely not. And if you’re looking to launder large amounts of money, I’ve been told the easiest and safest way to do it is in the London property market. Few questions asked. Easy as pie. Nice views on the river.
But seriously, we’re all lobsters and we’re all in the pot now. It’s boiling. Eat the cash users! The evolution of payment systems means that cash would have died a natural death all on its own. The reason central banks and governments are so eager to hasten the death of cash is that they want to replace it with digital cash. And they want to do it before the free market comes up with blockchain based digital payment systems that are beyond the control of central banks and spy agencies.
The race is on. Will technology be a tool of economic and political repression? Or a tool for liberty and financial independence? Probably some of both.
Category: Central Banks