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European Central Bank Ends Production And Issuance Of €500 Banknote

 
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 Posted 05/08/2016  1:17 pm Show Profile   Bookmark this topic Add CCFPress to your friends list Get a Link to this Message
European Central Bank - ECB ends production and issuance of €500 banknote.

ECB has decided to discontinue production and issuance of €500 banknote
Europa series of euro banknotes will not include the €500
€500 banknote remains legal tender and will always retain its value

Today the Governing Council of the European Central Bank (ECB) concluded a review of the denominational structure of the Europa series. It has decided to permanently stop producing the €500 banknote and to exclude it from the Europa series, taking into account concerns that this banknote could facilitate illicit activities. The issuance of the €500 will be stopped around the end of 2018, when the €100 and €200 banknotes of the Europa series are planned to be introduced. The other denominations - from €5 to €200 - will remain in place.

In view of the international role of the euro and the widespread trust in its banknotes, the €500 will remain legal tender and can therefore continue to be used as a means of payment and store of value. The Eurosystem, which comprises the ECB and the euro area national central banks, will take steps to ensure that the remaining denominations are available in sufficient quantities.

The €500 banknote, like the other denominations of euro banknotes, will always retain its value and can be exchanged at the national central banks of the Eurosystem for an unlimited period of time.

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 Posted 05/08/2016  1:29 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
Any medium of exchange can be used for illicit transactions, one could store the value of their illicit transactions in mass quantities of high end wine if they so desired. Does that mean if they did we should ban the purchase of wine because people could use potentially use it as a means of storing value for illicit activities? This foolishness will never end.
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
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 Posted 05/10/2016  12:09 am  Show Profile   Bookmark this reply Add CelticKnot to your friends list Get a Link to this Reply
I don't follow it either. Without the 500 Euro notes, illicit transactions will likely be done with the next largest denomination, the 200 Euro. Guess they'll need to do away with that one too.
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 Posted 05/10/2016  02:17 am  Show Profile   Bookmark this reply Add redlock to your friends list Get a Link to this Reply

Quote:
Without the 500 Euro notes, illicit transactions will likely be done with the next largest denomination, the 200 Euro.


People have already reacted to the news (earlier the rumour) of the discontinuation of the €500 note.
The number of €500 notes in circulation has dropped from an all time high of 613,56 million in Dec. 2015 to 594,42 mill. last month. (All data from the ECB website). While the number of €200 notes has risen to an all time high last month (208,56 million) the number of €50 and €100 notes in circulation has risen even more dramatically. So people are ''fleeing'' from the €500 into the €50 and €100 denominations much more than the €200.
Edited by redlock
05/10/2016 02:19 am
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 Posted 04/30/2017  8:53 pm  Show Profile   Bookmark this reply Add PacoMartin to your friends list Get a Link to this Reply
To add to redlock's post made in May 2016, the final change for calendar year 2016
+3.9% All banknotes (by value) :€42.75 billion
+2.2%    €5 : +€0.19 billion
+2.6%   €10 : +€0.62 billion
+4.4%   €20 : +€3.02 billion
+9.9%   €50 :+€41.66 billion
+13.4% €100 :+€28.78 billion
+12.9% €200 : +€5.34 billion
-12.0% €500 :-€36.85 billion


So in absolute terms the circulating €50 banknotes increased in value by €41.66 billion which more than replaced the €36.85 billion lost in €500 banknotes. The increase in €200 banknotes was only €5.34 billion. Over 40% of the value of circulating ECB banknotes is in the €50 denomination.

Organized crime faces many logistic challenges, so I am sure they will adapt to the smaller denomination banknotes. The challenge of operating in Sweden where nearly all the cash has been removed is much more difficult.
Edited by PacoMartin
05/01/2017 10:10 am
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 Posted 04/30/2017  9:06 pm  Show Profile   Check XavierOfGreen's eBay Listings Bookmark this reply Add XavierOfGreen to your friends list Get a Link to this Reply
That a cashless society prevents organized crime is a fallacy, many types of criminal enterprises have already adapted to using electronic transactions. For example, there is a worldwide network of telephone scam operators who utilize prepaid debit cards to facilitate their activities.
Oldest Found-------
Cent: 1842 (from machine) ---- Three Cent: 1866 [Nickel] (from machine)
Nickel: 1883 (from roll) ---- Dime: 1911 (from roll)
Quarter: 1932 (from machine) ---- Half: 1917 (from roll)
Dollar: 1880 (from machine) ---- Foreign: 1863 (from machine)
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 Posted 04/30/2017  9:12 pm  Show Profile   Bookmark this reply Add PacoMartin to your friends list Get a Link to this Reply
Normal people don't want every transaction they make to be traceable. There will always be a loophole that can be exploited by criminal element.

The new €50 was introduced in the 19 countries of the euro area on 4 April 2017. It is the fourth banknote in the Europa series.

Right now the ECB is destroying more old banknotes than introducing new ones. But unlike Sweden it is not clear if that is policy or simply logistics.

Sweden is introducing new 500kr (~€52) and 1000kr (~€104) banknotes in very small quantities for a country of 10 million people. There are only a token number of 1000kr banknotes. Sweden had a 10,000kr (would be worth over €1000 today) banknote that they made invalid in 1991.

In earlier decades Sweden had possibly the highest amount of cash per capita in the entire world. At one time cash was roughly 10% of GDP. Now they are getting close to 1% of GDP


Month |Thousands of NEW banknotes (net change) 1000kr and 500kr denomination
Oct 31, 15	|	398 
Nov 30, 15	|	320 
Dec 31, 15	|	355 
Jan 31, 16	|	155 
Feb 29, 16	|	149 
Mar 31, 16	|	275 
Apr 30, 16	|	180 
May 31, 16	|	245 
Jun 30, 16	|	260 
Jul 31, 16	|	210 
Aug 31, 16	|	125 
Sep 30, 16	|	149 
Oct 31, 16	|	139	 5,140
Nov 30, 16	|	124	 6,676
Dec 31, 16	|	215	 7,270 
Jan 31, 17	|	 39	 4,616
Feb 28, 17	|	 55	 6,272
Mar 31, 17	|	 68	 8,870
Apr 30, 17
May 31, 17
Jun 30, 17 The older banknotes will cease to be legal tender as of this date


Edited by PacoMartin
05/01/2017 10:03 am
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 Posted 11/01/2017  04:52 am  Show Profile   Bookmark this reply Add redlock to your friends list Get a Link to this Reply
Coming cashless society -- or not -- the ECB has issued the production figures for 2018. They have ordered a whooping 715 million €200 banknotes (most likely all from the new series). That's almost three times more €200 notes than there are presently in circulation.

Futhermore, the ECB ordered 2,3 billion (or 2300 million) €100 (also most likely from the new series) which is in line with what's in circulation these days.
Edited by redlock
11/01/2017 04:53 am
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 Posted 11/01/2017  07:37 am  Show Profile   Bookmark this reply Add oriole to your friends list Get a Link to this Reply

Quote:
Any medium of exchange can be used for illicit transactions, one could store the value of their illicit transactions in mass quantities of high end wine if they so desired. Does that mean if they did we should ban the purchase of wine because people could use potentially use it as a means of storing value for illicit activities? This foolishness will never end.


The perception, correct or not, is that illicit transactions will be more difficult if a person needs to use 2 1/2 times the number of banknotes.

I suspect that this is being done for appearances, since those doing illicit things will simply find another way, using whatever is available. Pardon the pun, but since wine is not a "liquid" investment, it is not the best vehicle for illicit transactions.
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 Posted 11/02/2017  3:34 pm  Show Profile   Bookmark this reply Add paxbrit to your friends list Get a Link to this Reply
Once you reach a certain level of gain in illicit activities, cash becomes a negative factor and is replaced by clandestine bank accounts, physical assets, and investments.
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 Posted 11/03/2017  1:48 pm  Show Profile   Bookmark this reply Add PacoMartin to your friends list Get a Link to this Reply
In the 21 months since ECB announced that they would eliminate the 500 Euro banknote, circulation of said banknote has been reduced by 16%. However overall circulation of banknotes has increased by 5.5% over the same time period.
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 Posted 01/26/2018  05:01 am  Show Profile   Bookmark this reply Add redlock to your friends list Get a Link to this Reply
Interestingly, there was a small uptick of €500 notes in circulation in shortly before Christmas 2017.

AFAIK, central banks will stop giving out €500 at the end of 2018.
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 Posted 04/21/2018  03:21 am  Show Profile   Check yellow88's eBay Listings Bookmark this reply Add yellow88 to your friends list Get a Link to this Reply
paxbrit hit the nail on the head.

I would like to add the following.

Most large denomination notes only "circulate" between central banks and banks that are members of a central banking system. They are used to fulfil the literal physical cash reserves on hand requirement(s). They are stored in banks' vaults and at times may need to be physically transported. The higher the denomination the less vault space (i.e. real estate) is needed and transportation costs are less because of less volume and weight.

Large denomination notes ($100 USD and up for example) in "real world" circulation have an estimated physical lifespan in years that is multiples of the lesser denominations. I am talking about the physical wear and tear a note goes through during circulation. Most lesser denominations have to be removed after 4-6 years on average simply due to physical wear and tear according to the Fed. Where as a $100 USD that has to be removed due to wear and tear is 15 years old on average. Although they state most are removed way before this for a variety of reasons.

One thing they conveniently leave out of these statistics is what percentage of the $100 USD, for example, that they say they print actually enter "real world" circulation. My assumption is that it is a very tiny percentage.

In addition they clearly state that the ones they remove that are not physically "worn out", which is most, are not destroyed either. They are "stored".

You guys can do some basic math. There's an enormous amount of high denomination Federal Reserve Notes stockpiled by the Fed.

The above scenario and stockpiling happens at all (most) Central Banks around the world.

Food for thought.
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Valued Member
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 Posted 05/01/2018  03:58 am  Show Profile   Bookmark this reply Add PacoMartin to your friends list Get a Link to this Reply
I noticed that small uptick before Christmas 2017 (about 0.6%) and again in March 2018 (about 1.3%) .It's interesting that was even possible unless the central bank had a secret store.

---------------
Commercial banks in Sweden have almost no cash on hand at all. They must not be subject to those kind of laws in Sweden. The BIS keeps track of that statistic as well, and it is shockingly low.

The largest recorded geomagnetic perturbation, resulting presumably from a Coronal Mass Ejection, coincided with the first-observed solar flare on 1 September 1859. The storm took down parts of the recently created US telegraph network, starting fires and shocking some telegraph operators.

According to a report published in 2012 by physicist Pete Riley of Predictive Science Inc., the chance of Earth being hit by a similar-class storm between 2012 and 2022 is 12%.
Edited by PacoMartin
05/01/2018 04:18 am
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 Posted 05/01/2018  04:10 am  Show Profile   Bookmark this reply Add PacoMartin to your friends list Get a Link to this Reply
Under the category of "how much is enough" we note that Iceland has five denominations of banknotes worth 82.07€, 41.03€, 16.41€, 8.21€, and 4.10€. There is a proposal to keep only the smallest two denominations and prohibit cash transactions at stores. All in the name of prevention of tax evasion.
That trumps even the proposal to eliminate the 50 pound banknote in Britain and have only the 20 pound note (worth 22.80€).
Edited by PacoMartin
05/01/2018 04:19 am
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 Posted 05/01/2018  04:49 am  Show Profile   Check yellow88's eBay Listings Bookmark this reply Add yellow88 to your friends list Get a Link to this Reply
For all intents and purposes cash (as we know it) is at the very end of a long slow death.

Below is the content of an email I received from Wells Fargo. NEVER in my life have I, or any one else I know, NOT been able to do what they no longer allow.



wellsfargo.com
Cash deposits will be limited to account owners or authorized signers
What is happening
To help reduce criminal activity and protect your account, we'll be making changes to our policy for cash deposits made at Wells Fargo branches.

Once our policy takes effect in a few weeks, we'll only accept cash deposits into your Wells Fargo Consumer checking or savings accounts if it is coming from an account owner or authorized signer.

What you should know
If a non-account owner needs to deposit money into your account, they can deposit a check, cashier's check or money order, or use a person-to-person payment service like Zelleฎ.

All customers will need to provide identification to make cash deposits.
Wells Fargo ATM or debit card holders may use their card and their Personal Identification Number (PIN) to confirm their identity when making deposits.
Customers who do not have a Wells Fargo ATM or debit card may present a valid driver's license, state or federal government-issued ID card, passport, or other similar picture ID.
Questions?
If you have questions, please ask a banker in your branch, or call us at 1-800-869-3557, 24 hours a day, 7 days a week.

Thank you for choosing Wells Fargo.

Wells Fargo Deposit Products Group
wellsfargo.com | Fraud Information Center
Please do not reply to this automated email. Sign on to send a secure email.

Zelle and the Zelle-related marks and logos are property of Early Warning Services, LLC.
"Why' is the only real social power, without it you are powerless."
- Merovingian#65279;

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