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 Replies: 100 / Views: 12,577 |
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Valued Member
United States
411 Posts |
Quote:
Certainly. Thank you. One of the questions that comes up repeatedly is how long would it take to eliminate the US$100 banknote if you decided to stop producing new ones. People imagine scenarios where the c-note is declared illegal, and people end up driving to the desert to bury canisters of c-notes to hide them from authorities. The historical contrast between circulation figures for Sweden and Norway gives us some inkling that they won't vanish on their own even if cash becomes less popular. It helps to declare old notes invalid which Norway won't do for a few more years yet. SEK ....... NOK ....... 1000kr banknotes (,000) 42,091 kr > 25,818 kr 2006 38,648 kr > 26,179 kr 2007 34,302 kr > 25,371 kr 2008 31,367 kr > 24,382 kr 2009 28,565 kr > 23,134 kr 2010 25,090 kr > 21,678 kr 2011 21,380 kr ~ 21,180 kr 2012 09,709 kr < 19,798 kr 2013 06,160 kr < 18,712 kr 2014 04,198 kr < 17,947 kr 2015 02,672 kr < ? ? ? ? ? 31. Aug. 2016 |
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Pillar of the Community
Norway
1358 Posts |
Quote:
I hope someone appreciates some of the statistical posts as it took sometimes years to find all this data to try and see what is really happening. I certainly do appreciate your statistics, and what I am trying to do is add some context to the numbers you produce. As stated, you are very American in your way of thinking. That's absolutely fine with me, but you need to understand Swedish/Norwegian/Scandinavian culture to understand more of the context of the numbers. Or, as former British PM Benjamin Disraeli put it: "There are three kinds of lies: lies, darn lies and statistics." What I am trying to do is add some of that context to your numbers. In the USA people tend to have a deep distrust of their government. It's the complete opposite in Scandinavia. In the USA people tend to love cash. It's the complete opposite in Scandinavia. Money is very important in the USA. Children are taught here from a very young age that it's fantastic to be mediocre and that having a mediocre salary is the best you can have. Look up Janteloven to see what I mean. That 'law' is still deeply, deeply blueprinted in society here. From that point of view, I'll never be Norwegian/Scandinavian myself. I distrust the government, I love cash and I do have my concerns when it comes to privacy with all the electronic systems, even though I have not much to hide, really. And I do believe that, in order to be successful, you have to stand out, you have to be unique, you have to push the limits and boundaries. You need to go against Janteloven. Again, please keep on producing those numbers. They are good! But please also try to add the context I try to provide, as it's absolutely not an effort to ridicule the statistics, it's merely an attempt to add some context. |
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Pillar of the Community
Norway
1358 Posts |
ps. with being the opposite of loving cash I mean being indifferent to a specific payment method, not being hating cash. I don't think anyone, except mr. ABBA, is against cash around here.
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Valued Member
United States
411 Posts |
Quote:
In the USA people tend to have a deep distrust of their government. It's the complete opposite in Scandinavia. In the USA people tend to love cash. It's the complete opposite in Scandinavia. Money is very important in the USA. Cash is perhaps more important in the European continent than it is in the USA. Look at Switzerland. I think that if we had that many $1000 banknotes per capita that even the rank and file would think the government was catering to criminal elite. Japan is completely obsessed with cash. One difference between the USA than in Europe is the number of people who regard the taking away of cash as a precursor to the apocalypse. And the second beast required all people small and great, rich and poor, free and slave, to receive a mark on their right hand or on their forehead, so that no one could buy or sell unless he had the mark — the name of the beast or the number of its name.One guy even said to me that he was afraid that the government wouldn't let him buy chocolate bars if he was too fat. But mostly people are afraid that without cash, the government would balance their books by taking a percentage of everyone's bank accounts. But it is deeper than distrust of government. It is also distrust of banks, or just plain old fear of an electro magnetic disturbance destroying electronic records. Sometimes it is just fear of the business cycle or of civil insurrection. But the USA has roughly the same amount of cash circulating up to and including the $50 as Norway has circulating (per capita). The majority of people never touch a $100 banknote, except to purchase a used car or something similar. I am curious how far Sweden is going to go with this trend. Are they going to set a goal of 40 billion SEK by the end of this cycle of new banknotes which ends next summer?
Goal Mkr comp. Present Day
1,000 kr ~ 956 kr 20 kr
1,000 kr ~ 942 kr 50 kr
4,000 kr < 5,463 kr 100 kr
6,000 kr > 5,021 kr 200 kr
25,000 kr << 39,586 kr 500 kr
3,000 kr ~ 2,672 kr 1,000 kr
40,000 kr 54,640 kr
I think the only practical way to accomplish that would be to limit all ATM withdrawals to 3000kr or less. Almost all central banks claim to distribute cash to meet demand, but I personally don't believe that. Edited by PacoMartin
09/29/2016 10:46 pm
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Pillar of the Community
Germany
992 Posts |
@PacoMartin
I also apreciate your statistics.
But as UltraRant has pointed out they need some context. The cultural difference between Scandinavia (Norway, Sweden, Denmark) and the USA regarding government, banks, money, privacy and success is huge. Heck, even the difference between Scandinavia and the rest of Europe is quite noticable (especially regarding privacy).
I think you will be quite shocked when the ''cash in circulation'' figures with the new swedish 100kr and 500kr will be available in the few months. It will be pretty low.
Declaring the USD 100 note illegal or demonitize it would crash the world economy. Not going to happen in the next couple of decades. Why? Because it would undermine the trust in US government and US Dollar. No-one can afford that for the forseeable future.
The Swiss Franc is used as a ''safe haven.'' The 200 and 1000 notes (and even the old 500 notes) are used to store value -- world wide and in Swiss banks. So, Swiss statistics are a bit tricky regarding actual circulation.
Edited by redlock
09/30/2016 04:54 am
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Valued Member
United States
411 Posts |
Quote:
The cultural difference between Scandinavia (Norway, Sweden, Denmark) and the USA regarding government, banks, money, privacy and success is huge. Well those cultural differences were a big topic of conversation in this presidential election, particularly with the Democratic candidate Bernie Sanders. But many of those cultural differences you are talking about were there 25 years ago. Japan and Switzerland still had more cash than anyone else. The £50 note introduced in 1983 was still circulating at roughly 1 note per capita. Although Sweden was within one year of phasing out checks they still circulated cash on par with the USA.
1991 coins and notes as % of GDP / $ equivalent per capita
9.4% Japan $2,789
8.0% Switzerland $2,802
6.8% Netherlands $1,438
6.5% Germany $1,411
6.2% Belgium $1,331
5.4% Italy $1,168
5.3% Sweden $1,587
4.6% United States $1,070
3.7% France $863
3.1% Canada $646
2.7% United Kingdom $509
2003 coins and notes as % of GDP
16.6% Japan
11.4% Hong Kong SAR
9.8% Switzerland
8.7% Singapore
6.6% United States
6.1% Euro area
4.3% Sweden
3.8% Canada
3.4% United Kingdom
2015 coins and notes as % of GDP
20.66% Japan
15.51% Hong Kong SAR
12.25% India
11.76% Switzerland
10.63% Euro area
10.56% Russia
9.55% Singapore
8.20% Saudi Arabia
7.90% United States
6.83% Mexico
5.56% Korea
5.37% Turkey
4.64% Australia
4.08% Canada
3.82% Brazil
3.72% United Kingdom
2.39% South Africa
1.73% Sweden
Maybe it was the cultural differences in Sweden that allowed them to begin this great experiment, but it is relatively recent. Cash peaked in 2007 and only since 2013 has it dropped like a stone. That was not just cultural differences. It was a deliberate move on the part of the government to issue a 1000SEK banknote in 2006 with the motion security strip AND to produce small quantities of the new notes. The notes without the security strip were declared invalid by the end of 2013. I also have no trouble believing that in small town Norway or Sweden everybody has bank accounts and any two people have at least one common ancestor in the last 5 centuries. But the bulk of cash transactions are made in big cities anyway. In the USA where the Fed distributes cash by district, the district that includes New York City requires much more cash than any other districts. Edited by PacoMartin
09/30/2016 6:30 pm
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Valued Member
United States
411 Posts |
Keep in mind that this quote was written 40 years ago when the $100 banknote was circulating at less than 1 note per capita, banknotes and coins were 3.2% of GDP in the USA, and the phrase "It's all about the Benjamins" didn't exist. At one point in the article he asks if the reader even knows whose face is on the $100 bill. Quote:
Calling in the Big Bills by James Henry
-The Washington Monthly, May 1976, pp. 26-33
A monetary detective finds a painless way to catch the tax evaders and cripple organized crime
James Henry is a Danforth Fellow in economics and law at Harvard University.
The historical evidence is even more perplexing. You might expect that increased urbanization, the rise of real incomes, the invention of credit cards, and the automatic withholding of taxes, union dues, and pension and medical fees would have reduced the demand for cash. Initially this reduction did take place. At the end of the Civil War, there was about $80 in currency in the United States for each $100 of demand deposits. By 1929 this ratio had declined to $15 per $100. But then the ratio began to rise. By 1958 it had reached $25 per $100, and by 1974, $31.32 per $100, close to its 1895 level.
The real value of currency per capita in the United States has risen from $78.64 in 1929 to $248.38 in 1975, while the real value per capita of denominations of $50 or more has risen from $20.55 to $90.47. In other words, even eliminating inflation, the average American has almost five times as much money in large bills as he or she did 46 years ago.
Of course the average American carries around no large bills at all. Where is all this cash? Personally, I think all this cash is destabilizing force in the world, allowing central banks to share in the profits of worldwide criminal organizations. I would have no problem with a worldwide treaty to limit cash to something manageable (say 5% of GDP) although we might just create a private industry. On the other hand although Iceland managed to keep banknotes and coins at 1% of GDP from 1985-2006, the tiny size of the country and massive inflation makes them somewhat of an exception. Sweden's experiment is pretty amazing to me. Edited by PacoMartin
09/30/2016 10:24 pm
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New Member
Australia
3 Posts |
Hi, I came across this discussion and would like to add my 2c worth.
Like PacoMartin said, while Sweden has a different culture to the US, the proportion of cash in Sweden was more like the US and Australia in the past, but now it's so much lower while the culture wouldn't have changed that much, so I don't think it's the culture. In my opinion, it's because they are issuing new banknotes and are making all the older banknotes invalid, and they've done this a number of times.
I'm in Australia. Like the USA, we have lots of our own $100 notes in circulation, way more than the average person would see in a year. Even the Reserve Bank doesn't know where they go - being made of polymer and the fact that they get so few back, they don't know how long they last, though I've read one estimate that they would last 70 years. However the value of Australian $100 notes isn't as out of proportion as US $100 notes.
If you look at Australian banknotes in circulation in 2014, they were only slightly higher than the value of Swedish banknotes in circulation back then, relative to each country's GDP, with some exceptions. The value of $50 & $5 notes as a proportion of GDP was more than that of Swedish 20 & 500 Kr notes respectively by about 20-40%, but they beat us with 100 Kr notes vs our $20 notes. The two outstanding exception were the Australian $100 note (11+ times the value of 1000 Kr notes), and the $10 note (2+ times the value of 50 Kr notes), all relative to each country's GDP. I don't know why there were so many more $A10 notes, especially given that ATMs here issue $20 and $50 notes generally.
Despite the large number of Australian $100 notes that go who knows where and increasing banknotes in circulation, Australia is one of the most cashless nations in terms of daily use, although we are not yet at the level of Sweden. Our homeless magazine sellers don't have card readers yet and only a handful of stores have gone cashless, but there are now calls from some bus unions to ban cash on buses, something that happened in Sweden in the early 2010's I believe. On the other hand, we've had cashless tolls since the 1990's and we are the world's biggest users of tap and go, which is really popular here. We are also a few years ahead of the UK in terms of having more than 50% of retail transactions being non cash (in 2013).
As far as notes and coins are concerned, we are issuing new polymer $5 notes with extra security features, with new $10 notes coming out next year followed by new $50 notes. There are no plans to invalidate old banknotes - they remain legal tender.
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Valued Member
United States
411 Posts |
The Bank for International Settlement just released their summary for the end of 2015 a few weeks ago. Quote:
while Sweden has a different culture to the US, the proportion of cash in Sweden was more like the US and Australia in the past, but now it's so much lower while the culture wouldn't have changed that much, so I don't think it's the culture. Sweden basically had more cash than USA up until 1991 when the 10,000SEK banknote was declared invalid. After the formal vote to essentially get out of adopting the Euro (based on a loophole in the agreement), the government has been declaring large value banknotes invalid and replacing them with smaller numbers. Now you might say it is the culture that doesn't complain or riot, but it probably wouldn't happen on its own. Every central bank says they produce enough cash to meet "demand", but I personally think that is a very complex statement. Banknotes and coins per capita at end of 2015 in USD-source BIS $113 South Africa $195 India $282 Brazil $458 Turkey $599 Mexico $800 Russia $872 Sweden$1,460 Korea $1,583 United Kingdom $1,641 Canada $1,708 Saudi Arabia $2,320 Australia$3,571 Euro area $4,441 United States $4,911 Singapore $6,550 Hong Kong SAR $6,739 Japan $9,213 Switzerland BIS does not include Denmark, Norway, Argentina or New Zealand as members. Basically the above list is every member currency. ===================== Australia's absence of small denomination banknotes is an indicator that they don't do very many transactions with their cash. Australia is different from Canada and USA as they seem to have very little preference for the $20. Australia 2015 in AUD per capita$3175 Total banknotes and coin issued $3019 Total banknotes issued $345 Banknotes and coin held by banks $2830 Banknotes and coin in circulation outside banks . $1362 AUD 100 $1424 AUD 50 $144 AUD 20 $52 AUD 10 $37 AUD 5 Canada 2015 in CAD per capita$2271 Total banknotes and coin issued $2107 Total banknotes issued $187 Banknotes and coin held by banks $2083 Banknotes and coin in circulation outside banks . $22 CAD 1,000 (stopped production in 2000) $1145 CAD 100 $335 CAD 50 $523 CAD 20 $37 CAD 10 $34 CAD 5 United Kingdom 2015 in GBP per capita£1067 Total banknotes and coin issued £1000 Total banknotes issued £80 Banknotes and coin held by banks £1019 Banknotes and coin in circulation outside banks . £199 GBP 50 £647 GBP 20 £128 GBP 10 £26 GBP 5 United States 2015 in Dollars per capita$4,441 Total banknotes and coin issued $4,301 Total banknotes issued $263 Banknotes and coin held by banks $4,178 Banknotes and coin in circulation outside banks . $3,373 USD 100 $249 USD 50 $534 USD 20 $59 USD 10 $43 USD 5 $35 USD 1 $8 other (large value notes not produced since 1945) Japan 2015 in Yen per capita811,266 Total banknotes and coin issued 774,369 Total banknotes issued 75,183 Banknotes and coin held by banks 736,083 Banknotes and coin in circulation outside banks . 713,393 JPY 10,000 25,601 JPY 5,000 1,553 JPY 2,000 32,650 JPY 1,000 The JPY10,000 is circulating in such incredible quantities that it is difficult to imagine that the government is increasing production due to increased demand because of the threat of negative interest rates. You can tell that very few are spent routinely because of the lack of changemakers. The government considers this reliance on cash being stored away in private safes as a serious impediment to economic recovery, but so far they have not challenged the citizens right to hold cash by restricting production. Edited by PacoMartin
10/02/2016 12:15 pm
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Pillar of the Community
Norway
1358 Posts |
Quote:
Well those cultural differences were a big topic of conversation in this presidential election, particularly with the Democratic candidate Bernie Sanders. Bernie Sanders called himself a socialist. Fine with me. But he's still miles and miles away from being Scandinavian. Being Scandinavian isn't about being socialist, just like being a socialist isn't a typical Scandinavian thing. Quote:
Like PacoMartin said, while Sweden has a different culture to the US, the proportion of cash in Sweden was more like the US and Australia in the past, but now it's so much lower while the culture wouldn't have changed that much, so I don't think it's the culture. I gladly disagree with you. Again, thanks for your input, but you are 20.000 km away from us. A few decades ago, electronic payment systems were just being introduced around here. As I tried to explain: being Scandinavian is all about trusting everyone, up to the level of being downright naive. So if people get a new payment system by their government, which also would technically allow the government to track all their whereabouts, people will trust the government that that won't happen when it states that it doesn't do such things with the data. It's all about culture. Here's an infographic for those of you who want to get a bit better known with how it is to be Swedish, compared to being American. We're talking about the richest man in Sweden here, with a fortune that's billions of dollars: http://www.fixr.com/infographics/ik...s-apple.html(oh, and don't think anyone would ask for an autograph when he got spotted in economy class. That's just not Scandinavian to do). |
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Bedrock of the Community
United States
12057 Posts |
Just a quick aside that I thought of when I saw this post.
I asked a friend of mine, out of curiosity, who is formerly from California, then Germany, and now living in Sundsvall, Sweden, about whether or not she usually pays for things with bills and coins (she knows I collect) -- but she informed me that they almost exclusively use debit based transactions (cards) and cash is rarely used. (Apparently being in debt is also frowned upon, to the point that credit cards are very much more difficult to obtain than in the US.)
Member ANA - EAC - TNA - SSDC - CCT #890 "Most of the things worth doing in the world had been declared impossible before they were done." -- Louis D. Brandeis |
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Valued Member
United States
411 Posts |
Sometimes it helps to make a hypothesis and then see if you can prove it. My guess is that the culture of Australia is very geared to electronic payments. I base that partly on the very small number of $20 banknotes circulating in Australia. Even if you withdraw your money from ATM's in $50 you still have to make change. Americans and to some extent Canadians do not use the $50 denomination, and the very large number of US$100 bills is partly because over half of them circulate overseas.
Distribution of circulating currency(per capita end of 2015)
Australian and Canadian dollars are almost of equal value
$100 AUD$1362 CAD$1145 USD$3373
$ 50 AUD$1424 CAD$ 335 USD$ 249
$ 20 AUD$ 144 CAD$ 523 USD$ 534
$ 10 AUD$ 52 CAD$ 37 USD$ 59
$ 5 AUD$ 37 CAD$ 34 USD$ 43
Differences in US, Australian and Scandinavian society with regard to this question of money have to be explained partly in terms of evolution during time. When the Bank Act of Sweden was passed in 1975 they specified that the 10,000kr denomination had to be printed. It was a very large denomination which at the time was worth over $2000 . Consider that in comparison the US had not printed a banknote over $100 since 1945 and had pledged since 1969 to destroy any such notes that came into possession of a bank, and never to print any in the future. In Sweden the average per capita banknotes and coin was only 3,500kr in 1978, so a 10,000kr banknote was extremely valuable and indicates that the government felt that wealthy citizens should be able to store and transport large values very easily. U.S. currency in circulation in 1978 was worth about 2000kr per capita. Quote:
... she informed me that they almost exclusively use debit based transactions (cards) and cash is rarely used.
Thank you for your input, but the fact that Swedes do most of their transactions electronically is fairly well known. But so do the Danes, the Norwegians, the Icelanders, and to a lesser extent the British and Canadians. What is unique about Sweden is their seeming campaign to get almost completely get rid of cash. The Norwegians and Danes are not following a similar campaign, and Britain and Canada are actually increasing their cash in circulation by fairly substantial amounts. Transactions and "store of value" should be considered separate issues. With virtually only a token number of 1000SEK bills in circulation, and only eight 500SEK banknotes per capita in circulation, that would make it nearly impossible for there to be many home safes with even fairly modest amounts of cash. No matter how trusting your culture, most people worry about power failures and some sort of short term disturbances. One of my questions is how far will Sweden push this experiment. Will they cut circulation to six 500kr banknotes, to four or to two? Or do they think that eight is small enough? If Greece is under a 60EUR ~= 580SEK daily ATM withdrawal limit as a capital control, will Swedes tolerate a 3000SEK daily limit nationwide without any sign of a financial meltdown? Quote:
Here's an infographic for those of you who want to get a bit better known with how it is to be Swedish, compared to being American. We're talking about the richest man in Sweden here, with a fortune that's billions of dollars: I can appreciate the difference between the cultures, but most Americans looking to purchase instant status are not interested in cash, they prefer one of these card which are often made out of metal and have a large annual fee:  The Palladium Card by JP Morgan Chase $595 Visa Black Card From Barclays $495 Citi Prestige Card $450 Ritz-Carlton Rewards Credit Card From Chase $395 Chase Sapphire Preferred Card: $95 Marriott Rewards Premier Credit Card From Chase $85 Edited by PacoMartin
10/03/2016 12:21 am
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Pillar of the Community
Norway
1358 Posts |
Quote:
Apparently being in debt is also frowned upon, to the point that credit cards are very much more difficult to obtain than in the US. Simply not true. Most companies try to sell you a credit card. Airlines, banks, electronics shops: you name it, they have a Visa or MasterCard for you. I have one via my work with a $120.000 (NOK 1 million) limit to cover my travel expenses, but that is rather exceptional: most other cards have a limit of at most $1200 (NOK 10.000) or so. I also have a few of those in private life. The only thing you're usually not allowed to do with those cards is to take out cash from ATMs. Everyone here has a debt, it's not being frowned upon as long as you can control it. Mortgages also exist here, for example, or study loans: even though you don't pay here for universities, you still need money for housing and living expenses. Some studies take over 60 hours a week, so then you need a government loan instead of a side job. Here in Norway, having a debt, especially a zero-interest study debt, is seen as quite normal, also because one has to pay 'fortune tax' as soon as the total net value gets above a certain amount of money. Quote:
the government felt that wealthy citizens should be able to store and transport large values very easily This might be very true. A government that supports the needs of its citizens sounds very much like a Scandinavian government. Again: people here trust their governments and governments aren't seen as a necessary devil, but rather as a 'father figure' which takes care of the needs of the people. Quote:
I can appreciate the difference between the cultures, but most Americans looking to purchase instant status are not interested in cash That wasn't the point of the infographic... Can you please take a break and try to find out what I'm trying to say to you? Scandinavians don't hate cash. Showing off wealth is seen as bad manners. Money, no matter in which form or shape, simply isn't as important in Scandinavia as it is in the US. It's more regarded as a necessity, a way of having transactions, than as a status symbol. Scandinavians are lazy by design so anything that might save them a bit of work, like electronic transactions (or pre-assembling furniture...), is seen as an advantage. In the same respect, most Scandinavians are well-educated and curious about technology and have the means to fully explore the possibilities. That's also what's happening. The lowest paid Scandinavians still just need one job to make a living and to get a smartphone and internet connection, compared to the US where having three full time jobs at minimum wage won't even pay the rent for your broom closet. And remember that Norway doesn't even have a specified minimum wage... heck, even jobless people still have a good life here when living on welfare. And in addition: as said, people tend to trust each other and the government here, up to the point where people are downright naive. This huge level of trust also makes it easier to trust each other with new (lazy) means of payment, like via apps and contactless systems: people here will assume that you are not trying to cheat on them by default. Strangely enough, people here are quite concerned about safety, despite crime numbers being low: the thought of getting pickpocketed is a real nightmare for Scandinavians: they see electronic money as a safer alternative for cash. I live in a village where no crime has ever occurred (except someone got caught for speeding: 6mph/10kmh too fast), yet my wife can't sleep if the front door isn't bolted and double checked. Just that one of the millions of Scandinavians happens to be of ABBA fame and lost his mind to join an anti-cash campaign doesn't mean that it's actually important to most Scandinavians or that Scandinavians are against cash. Sweden will never be fully cashless, as long as there is a need for it. As said: people in Scandinavia tend to trust their governments, whether that is rightful or not, and most governments here simply lack the capacity and resources to come up with 'evil' plans like this: if there was a grand plan to ban all cash, it would come out quite fast and it would cause a riot: not because it's to ban all cash, but because it's being done behind everyone's back. That's the 'advantage' of living in relatively tiny societies as the Scandinavian ones: lines are short, everyone knows everyone and usually a secret doesn't remain a secret for a long time: look up Janteloven again and read carefully. On the other hand, and as previously stated: the Scandinavian governments have been explicit in public about reducing the amount of cash as a means of crime fighting. So yes, they sure do see the possibilities and advantages of reducing cash, but it's not as if people here are explicitly forced to stop using cash: why else would the Norwegian government otherwise have such a huge stock of 1000 NOK notes on the shelves? It costs a lot of money to produce and store those... As long as there is a (small) need for cash, there will be cash around. |
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Pillar of the Community
Sweden
1078 Posts |
Just want to chime in to say a few things Quote:
Scandinavians are lazy by design so anything that might save them a bit of work, like electronic transactions (or pre-assembling furniture...), is seen as an advantage. In the same respect, most Scandinavians are well-educated and curious about technology and have the means to fully explore the possibilities. Scandinavians are indeed very interested in technology, and lazy. There's a reason why Scandinavian people are some of the most online-active people in the world. I also commonly say people can't be 'bothered' with cash, meaning it's such a hassle and something easier would be preferred. Also, the IKEA reference, that gave me a good laugh  Quote:
As long as there is a (small) need for cash, there will be cash around. This is actually the view of the Riksbank in Sweden. They have stated that there's no end in sight for cash, so they will not phase it out completely. Instead, they say they only adapt to commercial demand which unfortunately means a decrease in circulating cash. The statistics posted here are very interesting indeed! |
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Valued Member
United States
411 Posts |
Quote:
Can you please take a break and try to find out what I'm trying to say to you? Scandinavians don't hate cash. Showing off wealth is seen as bad manners. Money, no matter in which form or shape, simply isn't as important in Scandinavia as it is in the US. It's more regarded as a necessity, a way of having transactions, than as a status symbol. I'm sorry if I don't appear to be listening, but you seem more concerned with the transactions. Money is also a "store of value" and cash allows you to operate independently of banks. In America surveys have said it is both the very young and the very old who keep a store of cash in the house. Possibly the reasons are different as the very old remember stories of all the banks closing, while the young are afraid of high fees. A 2012 Marist College survey of 1,080 adults found that the most popular place—with 27 percent of the vote—is the freezer. A little less than 20 percent of Americans hide cash in a sock drawer, while 11 percent put it under the mattress and 10 percent secure it in a cookie jar. Another 9 percent keep their cash somewhere else in the house. I can't prove it easily, because only Sweden reports to the BIS, but I suspect that Danes and Norwegian are just as likely to do electronic transactions as Swedes. But Denmark is circulating about twice as much cash as Sweden on a per capita basis and converting according to exchange rates. Total amount of valid banknotes and 20 kr coins in billions of kr 55 billion SEK pop 9.92 million 47 billion NOK pop 5.72 million 66 billion DKK pop 5.24 million
Total amount of cash in millions of kr
SEK NOK DKK
2672 17947 35649 1000 kr
39586 18355 15994 500 kr
5021 6056 6081 200 kr
5463 2154 4657 100 kr
942 1093 1234 50 kr
956 1760 2512 20 kr (only SEK is a banknote)
54640 47365 66127
DKK is worth about 30% more than SEK
On a per capita basis Norway is still significantly higher than Sweden. Sweden is dropping cash at a rate between 1 and 2 billion crowns per month, which may accelerate as the new 500kr banknotes are released this week. New banknotes mean that the old banknotes are also turned in for destruction. It is possible that Sweden will be circulating less crowns than Norway by the end of the year for a significantly larger population. Edited by PacoMartin
10/03/2016 12:00 pm
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Posted 09/29/2016 8:05 pm
