Thursday, May 5, 2016

The 500-Euro Story

The ECB (European Central Bank out of Frankfurt) made the decision yesterday that the 500-Euro bill will be 'retried' as of 2018.

Reason?  Their belief that it is used to a great extent in terrorism financing and money-laundering.

After 2018, the largest bill that you will be able to attain (for the Euro) is the 200-Euro bill.

One might sit and ponder upon this change and what will happen.

My suggestion is that you've got two entire years prior to 'end' and those who do money-laundering....will simply shift over to another currency.  Some other country in the region (unassociated with the EU) will simply be the supplier.

As for the opinions of most Germans on this?  Some think that this is to stop or erode cash-purchases where someone buys something with twenty 500-Euro bills and the transaction is not recorded or reported.  An example would be renovation work on a house where the craftsman gets paid in cash but never reports the income, or someone buys some cattle in cash.

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