The largest banknote in Japan and Britain JPY10,000 = £68.7 £50 = JPY7,280
Japan has 93% of its banknote supply in the largest denomination banknote. Britain has 22% of its banknote supply in the largest denomination banknote. Internationally they represent two extreme ends of the spectrum.
The British tend to use their cash supply primarily for routine transactions and often don't handle banknotes larger than £20. Such routine transactions could be more efficiently handled electronically.
The Japanese tend to use their cash supply for hoarding because they don't trust banks. All governments hate excess hoarding because money that is spent tends to stimulate the economy instead of sitting quietly in a home safe. Excess cash is often seen as instrumental in avoiding taxes (almost the national pastime in Japan).
Currency reform is most often associated with eliminating large denomination banknotes. But South Korea is establishing a new national objective by eliminating coins, which will also diminish the use of small denomination banknotes.
Which should be the greatest concern of any government? The inefficiencies of doing routine transactions with cash or the implied secrecy (or personal freedom) that comes with large denomination banknotes?
Quote: Get rid of all currency. Use plastic cards for every thing.
South Korea has ~ roughly 1¢, 5¢, 10¢ 50¢ coins $1, $5, $10 $50 banknotes
Once the coins are demonetized, people will start paying with plastic cards or phone apps. There won't be much use for the $1, $5, or $10
The $50 will go from 82% of the value of all banknotes to 90% or even theoretically 100% if the government feels that small banknotes should be demonetized,
But the use of plastic cards for all transactions, would not totally eliminate the desire to have large value notes to pay for big private transactions like used cars or just for privacy and the desire to have a home safe.
Korea is opting for efficiency but for right now preserving privacy.
Most reformers want to remove privacy in an effort to make tax evasion, drug trafficking and other activities more difficult.
By using only plastic cards, many advantages would be possible. Transactions between different countries would be much easier. Our government would be able to more easily know what your making. No one would have to carry coins or currency. Narcotics transactions would not be so easy. No need to worry about what coins should be made. Wallets and purses could be smaller. Cashiers at stores wouldn't have to figure out what change you get. And lots and lots of other advantages.
Sweden already is a no check society, and is very close to no banknote society. Banknotes per inhabitant are down to under 20 with the main banknote for ATMs down to 7 banknotes per inhabitant each worth $55. 5.0 : 20 kr : $2.21 1.8 : 50 kr : $5.52 2.9 : 100 kr : $11.03 2.5 : 200 kr : $22.07 7.3 : 500 kr : $55.16 0.3 : 1,000 kr : $110.33 19.8 : Total banknotes
The largest denomination banknote is only being circulated in token quantities. I suspect to omit it entirely would require legal action which no one was prepared to take.
Obviously Sweden could turn it's 20kr banknote into a coin the way they have done in Denmark and Norway, and the 1000kr banknote would hardly be missed if eliminated. Otherwise the banknote supply could not get too much smaller or you would end up losing the infrastructure of cash (ATMs, cash registers, armored cars, bill counting machines, etc.). It will be interesting to see what effect the new central bank digital currency has on the banknote supply.
An IMF paper lists 15 Jurisdictions Where Retail Central Bank Digital currency (CBDCs_ Are Being Actively Explored Australia (on hold) Bahamas Brazil Canada China Curaçao and Sint Maarten Eastern Caribbean Ecuador (pilot complete) Denmark (rejected) Israel Norway https://static.norges-bank.no/conte...rrencies.pdf Philippines Sweden United Kingdom (on hold) Uruguay (pilot)
Personally, I think Scandinavia would benefit by a uniform CBDC as a person could purchase a certain amount of CBDC and it would convert to the Krona of whichever of the four Scandinavian countries you are currently in (Sweden, Norway, Denmark, or Iceland).
For 2019 the print order is: $1 2,502,400,000 $2 153,600,000 $5 729,600,000 $10 339,200,000 $20 1,548,800,000 $50 224,000,000 $100 1,548,800,000 Total 7,046,400,000
Can the Fed simply order a billion $50 banknotes for the year 2020 and zero $20 banknotes? The idea would be to force banks to put $50 banknotes in ATM machines. If there were no new $20 banknotes, they would have no choice.
I do not buy this because of criminal stuff, they have had plenty of time to fix this. I would say the War on Cash is more for control, criminals etc will always use other means to get what they want. But if everyone was digital, how easy would it to be to get everyone's cash confiscated, or Bail ins, or increase taxes, or even negative interest rates, where you pay the bank to hold your money.
The FED released the statistics for banknotes in circulation at the end of 2018. For the first time the value of the $100 banknotes have passed 80% of the total value of all the banknotes in circulation.
Unlike Canada, the $50 banknote in the USA is losing ground to the $20 over the last few decades. Canada also favors the $20, as the choice for ATMs. but slowly acknowledging inflation and circulating more and more $50 banknotes every year.
Britain favors the £20 instead of the £50, but Australia and the Euro Area favor the $50 and the €50.
Here in New Zealand we are moving to cashless quickly.
In 2015/26 they phased in a new series of banknotes and in the past in 1999/2000 and 1992/93 when previous series entered circulation, they phased out the old cash quickly.
This time around it took several months before anyone even saw the new notes and even now you can still get old notes regularly, especially with the $50 and $100.
Most of our money is essentially worthless and useless. Covid 19 has also helped make it gauche, some shops are illegally refusing it.
Here in New Zealand our currency units are
10c - Essentially worthless change coin 20c - Ditto 50c - Ditto $1 - Low value coin, little you can buy with it - maybe parking time and kids video games or time at a self service car wash. $2 - More use, the largest coin and popular for vending and slot machines (Although these are moving to cash and paper vouchers)
Notes $5 - Change note, very common $10 - Change note, plenty of them $20 - The main note and workhorse from all ATM's - used heavily in many transactions of the NZ $6 Billion worth of cash in use, at least $4 billion of it is in $20 notes. By international standards its quite worthless (£10, USD $12, €11, Yen 1350).
$50 - Less common, but ctaching on, some ATMS dispense them and more people accepting them, bus drivers and small shops are suspicious of them, especially for small purchases.
$100 - Hardly any, viewed with extreme suspicion, you see them at casinos and drug busts - usually the latest meth bust here shows bricks of $100s and $50s - great for money laundering. Probably less than 10 million existing compared to 200 million $20 notes.
Counting up mintage figures, there are roughly 98 million $2 coins minted since 1990 and I guess 80% still circulate, 112 million $1 coins, 75 million 50 cent pieces, 98 million 20 cent pieces and 150 million 10 cent pieces.
Reason for this - we have EFTPOS which is a debit card swipe and pay wave system for small purchases and even up to $2500 a day for some banks. If its a debit card, all the banks have free and limitless eftpos plans.
Credit cards attract fees, but are hugely popular and the bank transfer system for large purchases and 99% of people get their wages direct debited now - means that the need for cash is slight.
Loving Halfcrowns. British and Commonwealth coins 1750 - 1950 and anything Kiwi. If it's round, shiny and silvery I will love it.
Just my opinion but black market transaction's are always going to happen, with or without currency. They will do it in silver or gold or gemstones, or cheese, or bread, or anything of value that could them be exchanged again for something else until you hit a legit transaction format.
Maybe the drug dealer take cheese instead of dollars, he sells the cheese to a pizza place, the pizza place gets a good deal, the drug dealer gets his money, and the pizza shop sells the pizzas and kicks most of it as perishable waste to avoid taxes.
There's no real way to stop it. You could replace cheese with chickens or produce or anything really. Where there's a will, there's a way. People will find a work around.
Many years ago I had a boss at a restaurant that bought a $2.00 receipt pad from the office supply store. Every day he'd write himself up a couple hundred in produce he never took in and would take the money from the register. Then he'd claim it all spoiled and was thrown away for a loss/waste deduction for taxes also. He upped this game to fixing a register to not report sales at all and bring it into the game during the busy hours so he could skim and then again whatever food disappeared, counted as waste loss and a tax deduction.
He works at a gas station now, no longer a business owner. I talk to him when I stop for gas and he's outside sweeping the lot.
Anyways. People will find a way to work around the systemperature that's my point. Be blessed.