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 Replies: 14 / Views: 1,447 |
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Pillar of the Community
United States
4692 Posts |
I understand why $100 notes are the largest currently in circulation, but that decision was made decades ago. It seems to me, that it is time to re-introduce the $500 (and perhaps $1000) notes back into regular circulation. Well, what do YOU think?
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Pillar of the Community
United States
4637 Posts |
With the trend leaning more towards electronic monetary transactions, I'm unable to think of a situation where I'd feel comfortable paying for anything with $500 or $1,000 banknotes. The European Union recently eliminated the €500 banknote, leaving the €200 as their largest denomination. No doubt they're both cool and impressive, but I doubt they ever get issued again.   |
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Moderator
 Australia
16826 Posts |
Central banks worldwide, including the Federal Reserve, have come to believe that the only people who would make use of such large cash transactions are criminals. You can argue if this opinion is right or wrong till we're all blue in the face, it won't change the fact that this is what the Federal Reserve believes, and it is they whom you must convince and impress with the need for such notes. Unless you think that Congress has the intestinal fortitude to go against the advice of the Federal Reserve in this matter, and over-rule them.
Now that the need for physically moving large-denomination notes between banks is long gone, replaced by electronic transactions, the banks themselves have no need for such notes. So I'm afraid you'll have to wait until inflation catches up, and $500 will only buy you a couple of cheeseburgers at McDonalds, before you see $500 notes re-introduced.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis
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Moderator
United States
54280 Posts |
Counterfeiters would love it! 5 times the return for each fake bill.
Show your financial support of the Coin Community Family (click here)See my topic on Mexican Numismatic Medals (click here) |
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Valued Member
United States
233 Posts |
Quote:
So I'm afraid you'll have to wait until inflation catches up, and $500 will only buy you a couple of cheeseburgers at McDonalds, before you see $500 notes re-introduced So next year, the way things are going? Ba da bum  |
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Bedrock of the Community
United States
10982 Posts |
I'm old enough to remember when a $20 bill was considered a big bill. With just CPI rates that $20 bill in 1972 would be worth $138 today. Put another way a $500 bill today has the same purchasing power as $72.50 did in 1972.
Finally let's say you had a $100 bill in 1972. How much would it buy today? An astounding $688 worth of goods or services!
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Bedrock of the Community
United States
94367 Posts |
Ah yes, 1972 - should have spent my money on coins rather than weed.
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Moderator
United States
188213 Posts |
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Well, what do YOU think? I am all-in if... We also get rid of the cent and five cents coins, and replace the one dollar, two dollars, and five dollars notes with coins. There, I just shifted the decimal point for us. The $500 is the new $50.  |
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Pillar of the Community
United States
4637 Posts |
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Replace the one dollar, two dollars, and five dollars notes with coins. Americans have no interest in coins. Since the use of electronic toll sensors, I no longer have quarters in my car and I haven't purposely carried change in my pants pockets in forty years. Coins make a one-way trip home, get tossed into a jar and never leave the house. |
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Valued Member
United States
255 Posts |
As fun for collectors as this might be, I can't imagine this happening... There are some stores that won't even take one hundred dollar bills anymore and some that won't take anything larger than a twenty after certain hours... I also can't imagine someone buying a pack of gum with a $500 note.. that would be a lot of change to give out..
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Pillar of the Community
United States
3207 Posts |
US currency is fairly common overseas, where every note becomes, in effect, an interest-free loan to the US. IMO that's reason enough to print larger denominations again, at least ones with strong anti-counterfeiting measures.
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Moderator
United States
188213 Posts |
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Americans have no interest in coins... Actually, I agree. I was just throwing gasoline on the fire.  Electronic payments will replace those lower denomination notes before coins will. Quote:
As fun for collectors as this might be, I can't imagine this happening... To be honest, I do not imagine any of it happening.... $500 notes or replacing lower notes with coins. Heck, I am still skeptical we will ever get rid of the costly cent or nickel.  |
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Pillar of the Community
United States
586 Posts |
No one wants to carry large amounts of cash anymore. There is little risk in carry credit cards or checks by comparison.
The original reason for such large denomination bills would be to exchange them for silver or gold.
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Pillar of the Community
United States
1316 Posts |
Agree with the above. There is a very small % of people who want to carry around such notes. This betters serves criminal activity than anything else and the Fed knows it.
I've heard that there are more $100 floating around internationally than in the US. I think this would take even more capital internationally.
Not sure its a help to many average folks here in the US but will surely be a headache for the govt to manage.
Edited by Collects82
04/20/2022 1:13 pm
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Pillar of the Community
United States
600 Posts |
Great for human traffickers, drug dealers, and money launderers. Useless for actual everyday commerce. No thanks.
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Replies: 14 / Views: 1,447 |
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Posted 04/20/2022 07:21 am
