Topic: Removal of $100 bills from circulation (Read 438 times)

Weirdly enough I've been told they don't accept 100s or even 50s in multiple places of business.  Rediculous as it sounds I just walked away.  If I have legal tender for something I refuse to use a card or something else because that company doesn't "accept" it.  I get it from a counterfeit perspective but still.  How rediculous that a business wouldn't accept a $100 when I was spending around that much.  It wasn't lime I was buying a pack of gum lol.

It is customary to withdraw a category of currency from the market by replacing it with a new category or alternative categories, due to the government's desire to withdraw money from the black market by disclosing it. Contraband dealers and anyone who engages in a suspicious activity that generates a profit in the form of cash will find himself forced to hand over that money to the government and reveal his identity before he finds enough time to launder it.
The hypothesis closest to reality regarding the $100 bill is that it cannot be withdrawn from the US market before it is withdrawn from the global market because the dollar is the world’s currency used by billions of people around the world.
Of course, this is assuming that they are not mere rumors, because this is indeed difficult to happen, at least in the current global situation .

"Rumored" being the keyword of all of this. This is not going to happen because it does not need to happen. It's a scare story that only someone who is focused intently on pushing a crypto narrative would pick on. Dollars are the reserve currency in the world, the whole idea that "other countries" (of which there are two hundred plus) banning it would somehow spur the US and EU to take such action is pretty dumb. America's monetary printing policy is not determined by a foreign country banning a certain format of their bills, on contrary they are likely to take stern action against a country that bans their currency and force such laws to be reversed or impose penalties for it.

There is currently no such plan to ban physical cash, so this rumor is likely false.
The idea that cash is going away has been around for a long time, but it has not yet come to fruition. In part, this is because cash is still a very popular way to pay for things, especially small purchases.
Another reason is that cash is still the only legal tender in many countries. This means that people can use cash to pay their taxes, and businesses are required to accept cash as payment.
There are also some practical considerations. For example, it can be difficult to ban cash when there are large numbers of people who do not have bank accounts or access to digital payments.
The only people proposing this are cranks, conspiracy theorists, and those with an anti-government agenda. No offense to you OP.


What is happening is that some countries are considering issuing central bank digital currency (CBDC) — that is, digital money that would be backed by the government, just as paper money is backed by the government.  This would be a new form of money, not a replacement for cash, and it would be very different from bitcoin and other cryptocurrencies.
The goal of a CBDC would be to provide a digital alternative to paper money.  It would be used just like paper money, but it would be more convenient and it would be more difficult to counterfeit.  It would probably not be anonymous, and it would be very easy to track.  Nobody can be sure about such details for now.

The US I think with this wants to monitor the unlicensed money and money laundary going on and also to support their cbdc giving it protection either by taking away $100 and probably replacing it with cbdc. But IMO their is no need to try and reduce the dollar denomination because dollar these days has been performing better and standing slightly above euro ,

https://www.cnbc.com/2022/09/16/heres-whats-in-biden-framework-to-regulate-crypto.html
"In the White House's new framework, it points to the fact that a U.S. CBDC could enable a payment system that is "more efficient, provides a foundation for further technological innovation, facilitates faster cross-border transactions, and is environmentally sustainable."

"It could promote financial inclusion and equity by enabling access for a broad set of consumers," continues the report.

To that end, the administration urges the Fed to continue its ongoing research, experimentation and evaluation of a CBDC."

This is a start because the US wants to cut cash with the launch of the CBDC.




https://www.ledgerinsights.com/digital-euro-prototypes-caixabank-amazon-ecb/
CaixaBank, Amazon to make ECB digital euro prototypes

I'm not so sure the US government will abolish paper money. Because there is a lot of government business in paper money. If they are going to develop digital money, of course they will make it side by side. Using currency exchange rates with dollars has made the US a winner in international business. Today many currencies in the world are often very dependent on the state of the United States dollar, more than 61% of all foreign bank reserves are denominated in US dollars and about 40% of the world's debt is denominated in dollars. So it is impossible for the US to eliminate international business.

On this I agree, and as time goes by and inflation has a compound interest rate, the purchasing power of the $100 bills is less.


Here I do not agree. The day will come when everyone will use it. I also thought that I would not see people over 80 years old sending Whatsaps, reading the newspaper or using the bank with the mobile and I already know several cases.

This will never work, because:

1. $100 bills are not too big for the average Joe
2. Most citizens are too tech-illiterate to use CDBCs as an app. I mean, the only practical integration method for this is to replace banks' in-house traditional systems with a CDBC blockchain. It won't make a difference to the customer, they'll still get a card.

Once engaged in numismatics and bonnistics, and studied information accordingly. Yes, in the USA there were 1000 dollar bills and much larger ones, for example 100,000 dollars. But they all had a special purpose. Although they were also absolutely official means of payment. And if you now have a bill of 100,000 dollars, we can officially pay it!
But here we are talking about something else - we are talking about the fact that 100 dollar bills will be withdrawn from the general circulation, as, for example, in the EU, they stopped issuing and withdraw 500 euro bills from normal circulation.
For some time they will still be accepted in circulation, but at some point, they will most likely offer to exchange or credit to a card account. I do not exclude that with the requirement to indicate the sources of income and savings

This caught my attention. In the EU they removed 500 euro notes, but I can't easily accept this post saying that the USA will remove $100 bills from circulation. $100 is already a pretty ''low'' note, to be honest, it's not that there's a $500 note. If this is true and $50 becomes the new highest USD-denominated bill, this should say something about the economy... 

I think it makes sense as well if you are going to digitize the whole currency of your country, slowly removing currency notes is very important only then you'll be able to digitize your whole economy, but yes CBDC is definitely not the optimum solution to replace dollar bills. Also removing higher dollar bills is always better in order to curb corruption also as well. It prevents hoarding of cash currency because you will have to keep a big chunk of dollar bills to keep even small values in cash. But I think something as simple as UPI can solve the issues of cash usage there is no need of CBDC in order to digitize the economy.

I think that this will happen gradually and there will be no direct cash bans, but such situations will be created so that people themselves refuse cash.
Lack of cash will make robberies useless.
1,000,000 dollars ($100 bills) weighs 10 kilograms.
1,000,000 dollars ($20 bill) weighs 50 kilograms

I will tell you many stories about gold. It is expensive to buy coins in a bank, because they are 3-4 times more expensive than the cost of the same gold. And if the packaging is damaged, you will sell them only at the price of gold. Some people bought gold after the cryptocurrency hype of 2017, but then it turned out that they did not have gold, but gold-plated metal. So the scammers deceived many crypto-investors who made money on that hype.

They use cash because digital payments that time are not yet popular. Paypal started in 1998 but it became more popular and widely used online or offline on 2002. Credits to google for that. I know there are other payment methods like gold which can also be used as a medium of exchange but maybe cash is more convenient and also back on that time, the inflation is not that heavy as when compared to today when the purchasing power of our cash now had greatly lessened.

Anyway, they ban the 100 dollar bill and they are doing this to promote their cbdc? But, it'll be more effective if they will also ban other lower denominations.

Thanks Ratimov.
This is one of the reasons why the world's cash will become much less. Even in Russia, in 2023, the digital ruble will be launched into the test network. And for some reason I am sure that Google and Apple will not interfere with this, despite all the sanctions.

Hmmm, this is what I get from the link:



Could be logged into ebay vs not or even location, but as we agree there is a nice trade in the bills.
Not knowing your age the 'not in our lifetimes' is a tough call.

More and more cash is going 'subprime' no rewards, no security, larger chance of loss.
Yes it's anonymous and private, but if I get paid from my job by check / direct deposit I can pull cash out and pay for things but I loose the cash back % of any credit card I use, the warranty extension that a lot of cards offer, the security of knowing that if I loose my card I am really not out any money and so on.

Thinking about it the last time I used / had a $100 [outside of a casino] was when someone bought my old motorcycle and even then it was mostly $20s with a couple of $100s thrown in.

-Dave

About 20 years ago, most businessmen used cash, because for cash the price of goods was always cheaper by 3-8%. This is how business worked in Russia, and even now there are not so many changes.
There were many professions, and there were people who carried cash abroad or back. These are couriers, security guards, logisticians who organized routes. Now these people are unemployed. In any country there are shadow markets for exchanging cryptocurrency for cash.Regulators will wean the new generation from the cache, and when everyone gets used to cryptocurrencies and CBDC, this area will be tightly controlled. The big question is, how much time do we have left?

I went with the link to eBay which you provided, and there's nothing there except some paper garbage with Trump on it, that is not legal tender. But, indeed, there were large-denomination banknotes issued in the USA, you can see all of them following the link below:

https://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency

And, yeah, you are right, today they cost much more than their denomination

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As for removal of $100 bills from circulation, it will never happen. Not in our lifetime anyway.

I don't think US will be able to go full digital because they're the biggest currency used for foreign exchange and not a lot of countries will be able to do a full revamp their currency because it's expensive especially for poor countries, imagine South Sudan going digital when their most basic of infrastructure are destroyed or not yet built because they still have a civil war.

Quite expected and logical process. It's like moving from a currency in the form of cowrie shells to paper and iron money

I would name 3 arguments in favor of this decision. From less obvious to more:

1. Expensive cash service. Yes, money costs MONEY. And a lot of complex and unsafe processes. Cash service, collection, storage of money, cash places, etc. - these are huge costs for the state, business, people ... Honestly - specify, for the sake of interest, how much does it cost for a large network to "serve money" per year? And how much you have to invest in solutions that don't bring profit, such as cash register equipment, storage facilities, etc. You will be greatly surprised! And most importantly, these costs ultimately fall on the wallets of buyers, us!

2. Security \ Legality. The question is extremely simple and understandable. Cash has always been and remains the main entity that is the target of scammers. I hope there is no need to explain. The second side of this problem is corruption. It is mostly based on cash. As well as crime. Controlled digital money - if not a panacea, then a solution that will greatly complicate the lives of these groups (thieves, criminals, corrupt officials)

3. Technological side. After all, we are already living in the 21st century, and carrying a “bag of money” or a “pack of money” with us is becoming more and more inconvenient and illogical. The first step was taken more than half a century ago - with debit or credit cards, which made non-cash payments a means not only for companies, but also for individuals. But this system was still based on cash - ATMs, shops that work only with cash, etc. Now we are reaching the next level - a complete departure from cash and fiat money.