Removal of $100 bills from circulation - page 2.

NeuroticFish

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Quote from: bitbollo on August 25, 2022, 05:28:05 PM

I have used sometimes 200 euro banknotes "in real life" but each time shoppers are checking for a while because they see really few of these: you seem like an alien and it's really uncommon for any expense.

Yep, but this can work with the rather uncommon big banknotes. The 100 EUR and 100$ ones are pretty much common (although I indeed find the 50 EUR much more heavily used than the 100) and getting them out may not got as easy as with the uncommon (from the first place) ones.

Quote from: bitbollo on August 25, 2022, 05:28:05 PM

BTW I am really curious to see the real effect of "digital money" here in my country . Probably it will be the good chance for crypto to become mainstream.

It heavily depends on govt narrative. They can push CBDCs and still tell that bitcoin is dirty money, or it consumes the so beloved electricity (I'm already expecting news that people will suffer in the winter because of bitcoin).
So no, I think that CBDCs will have very limited "good" effect on bitcoin getting mainstream.

philipma1957

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Quote from: Ozero on August 24, 2022, 03:30:25 PM

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

I have also heard earlier about this US possibility as a financial blow to Russia. Hundred dollar bills are the most common outside the US. If they are invalidated, it will instantly undermine the financial strength of many states. Apparently, US-friendly states in this case will be provided with an approximately equivalent replacement with either digital currencies or new samples of one hundred dollar bills. This is a very interesting initiative. However, on the other hand, this will mean that the United States should not be trusted in the matter of finances.

USA laid the ground work for this years ago.

They have issued 3 or 4 changes in their money.

They now simply can pull older ones off the list of "good money".

https://www.uscurrency.gov/denominations/100

2013 to now

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-2013-present-features-en.pdf

1996 to 2013

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1996-2013-features-en.pdf

1990 to 1996

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1990-1996-features-en.pdf

1914 to 1990

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1914-1990-features-en.pdf

hatshepsut93

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No way this is going to happen, the world, including the West is currently in crisis, why would their governments do something so risky? To move to a digital currency that doesn't exist yet? And why people so quick to assume that governments want this digital currency? It would create quite some headache for them if some people will not use it, for example the elderly who are not good at using electronic devises.

bitbollo

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Quote from: NeuroticFish on August 24, 2022, 03:20:55 PM

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

There were discussions to stop the 500 EUR bills from circulation because they're too big for average Joe and only help those earning money from illegal things carry that money easier. And the 500 EUR bill is still in circulation, just no new banknotes are being printed.

The 100$ is not that big. And I also don't think that anybody would admit they are removing the 100$ bills from circulation to favor CBDCs. So unless they come with a better story I don't think they'll do it. And even then.. it'll take many years until the 100$ bill gets retired.

I didn't understand how they can ban 100$ bills also here in Europe Roll Eyes

about the 500 euro ... it's really really hard you can get a 500 euro bill. Of course no, ATM will not provide it.
In my country, Italy, you should have some "good friend" in the local bank.
At maximum you can get a couple of these notes each week, just because these are provided just few pieces to banks.
You must have a friend and probably he want "something back" (like some help or maybe a cut...)

I have used sometimes 200 euro banknotes "in real life" but each time shoppers are checking for a while because they see really few of these: you seem like an alien and it's really uncommon for any expense.

I think no one will pay something with 500 euro. These notes are already "removed" from circulation at least in the real life expense.

BTW I am really curious to see the real effect of "digital money" here in my country . Probably it will be the good chance for crypto to become mainstream.

DaveF

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They also last more then 2 decades:
https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm

So lets say they bounce it around and decide to stop printing them in 2027, which is 5 years from now. That is easily well into the 2050s before they really start to disappear.
There are still $500 and $1000 bills out there that are still legal tender, but good luck getting them out of the hands of collectors for anything close to that:

https://www.ebay.com/sch/i.html?_from=R40&_nkw=%241000+bill&_sacat=0&rt=nc&LH_Sold=1&LH_Complete=1

I think my parents still have a $500 and $1000 framed set someplace. Might have gone to my sister.

-Dave

dark1234

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the abolition of the $100 US bill, whether it's a rumor or indeed a plan that might be implemented soon, because I haven't found the source of the news myself in the media, but basically the elimination of 100 $ is the right thing because these banknotes are rarely used and large transactions already use digital money

Hispo

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Unlikely but not impossible, in the end it is just a rumor.
But it would undoubtly be a strategy for USA government to push their plans of CBDC adoption, however, such operation would be very expensive and it would take years to be executed, there is a lot of 100$ bills on this planet and even if they gave a flexible deadline it would be a nightmare for common people to exchange their bills, specially in countries where there is a de facto dollarization but not de jure, Venezuela and Zimbabwe are good examples.

For now, I'll assume this is just a rumor and nothing will happen this year, perhaps in the future but in my opinion to carry out something like it this very year would be a recipe for chaos considering the behavior of economies worldwide.

Gyfts

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Unsurprising if the proposals turn out to be true. The number of people using paper cash are dwindling. The people that do use cash certainly aren't using large bill denominations in high numbers. We're near the end of the year so I don't think the rumors you're mentioning are correct.

My prediction is ~2024 is when USD will begin to phase out its larger paper bills.

Then, I suppose the pathway towards CBDC's would subsequently involve eliminating cash based payment methods entirely, then targeting cryptocurrency as the competition.

goaldigger

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My only concern is those who don’t know how to use technology, though it can be learned but that’s another expense for sure. This kind of growth seems inevitable, we are slowly getting into a digital world and because of pandemic, it makes more feasible. Removing the $100 in circulation could be challenging but possible. Let’s see if those rumors are true and see the effect of that in the inflation, which I’m thinking if that is still a problem if we go digital.

Henrobakkara

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Quote from: Moeda on August 24, 2022, 04:02:13 PM

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

Of course for us as crypto users today is good news regarding the use of digital money. But this is still difficult to implement. Because there are still many people who do not understand digital money, nor how to use it. Yes, gradually it can be implemented.
If this works, of course it is very profitable for small countries, because they can control how much a country prints money in each year. In the Bretton Woods agreement of 1944, 44 countries stipulate that the printing of paper money must be guaranteed gold equivalent to the value of the paper currency being printed, or the so-called gold foreign exchange reserves and gold standard.
Then with the existence of digital money that is indeed transparent, the superpowers cannot print money above the gold foreign exchange standard because it violates the agreement.

That is what you would think. CBDC is not crypto, that is still the same money only in the digital form with the same value, and unless the government of the country adopts or allows the transaction of cryptocurrencies in the country can you say it is favorable to crypto because people will rather go for a digital asset that has the potential to increase in value (Crypto) compared to the one that don't (CBDC)

NeuroticFish

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Quote from: Smartvirus on August 24, 2022, 04:58:21 PM

As always, they always look for something illicit to pin it on. Such as frauds, scams and shits like that just to ensure users could look at other alternatives and not see the government to be forcing a decision on the citizens. Yet there are problems or printing more and more notes and then the issues of inflation.
I really hope @OP, you would have provided a link but, am sure to search for follow ups on the details although, I highly doubt the $100 bill would be flushed put of existence neither is it going to be the reason to promote the use of CBDCs. Some people are just comfortable wth them notes.

That's why I said that they'll never admit they'd do this to favor CBDCs. Just since 100$ bill is not that big this kind of "used for illegal things" narrative may not hold and, as Hydrogen said, this will have a good chance to backfire against USD as reserve/backup currency.

I agree with the others:
* this won't happen too soon
* even if this process starts at some point, it will take a lot of years until 100$ bill will get completely phased out
* it is possible that all this is some fake news or ideas of somebody overly paranoid

Quote from: zasad@ on August 25, 2022, 01:20:29 PM

Thanks for your replies. Articles on this topic can be easily found on Google. But I hear from a few economists I know who, in all seriousness, say that many governments will reduce the amount of cash.
A couple of years ago, before the epidemic, no one would have believed that people would sit at home for months, wear masks and receive vaccinations.
Maybe now my topic seems fantastic to you, but with certain events in the world, this can become a reality. But your opinion was important to me.

Printing cash is costly. And it's easier to slow down the printing of new banknotes (for all the values) than completely phasing out the bigger ones.

zasad@

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Thanks for your replies. Articles on this topic can be easily found on Google. But I hear from a few economists I know who, in all seriousness, say that many governments will reduce the amount of cash.
A couple of years ago, before the epidemic, no one would have believed that people would sit at home for months, wear masks and receive vaccinations.
Maybe now my topic seems fantastic to you, but with certain events in the world, this can become a reality. But your opinion was important to me.

virasisog

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Quote from: avikz on August 25, 2022, 11:52:55 AM

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

If digital payment is eventually taking over, what will be the requirement of having a certain denomination? In digital environment, you can just transfer the required amount.

If fiat continues without digital support, then strong economies can choose to remove higher denominations from the economy. That will make the fiat transactions easier. What I foresee, the human population in developed countries will slowly come out of using hard cash, especially people without any black money.

I've been hearing rumors regarding this issue and if this happens, I'm sure that more countries will also do the same thing. Switching to digital transactions would be convenient but quite hard, especially in third-world countries that still aren't well equipped with the latest technology to pursue digital transactions. I guess the digital system is starting to emerge this time benefiting those who have been enjoying its convenience for the longest time.

avikz

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Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

If digital payment is eventually taking over, what will be the requirement of having a certain denomination? In digital environment, you can just transfer the required amount.

If fiat continues without digital support, then strong economies can choose to remove higer denominations from the economy. That will make the fiat transactions easier. What I foresee, the human population in developed countries will slowly come out of using hard cash, especially people without any black money.

Don Pedro Dinero

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Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries,

No way. That is not going to happen any time soon.

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).

This will happen, and slowly, as you say, but they will not need to ban any notes. Most people will actively contribute to the disappearance of cash, and in fact are already doing so. There is a clear trend in this direction that seems unstoppable, but I think cash still has a few years to go, although it will be used mainly for small payments.

Darker45

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Well, it must have already started years ago. A number of studies, discussions, and researches must have already been done in relation to the plan of replacing hard cash with digital currencies. Of course, it wouldn't be a quick process. Everything will be gradual. It might even take decades before cold cash will be totally wiped out of circulation.

As for the hundred-dollar bill, this has also been talked about for years now. So far, the bill is still in circulation. New ones are still issued. I don't know if it's timely to stop its issuance knowing that money's value is continuously falling. Here in my country, what used to be a bill is now a coin. This conversion in form is representative of how low its purchasing power has fallen.

adaseb

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I think it will be a few years before this actually happens. Most people use credit cards these days but there are many, especially old people who only pay in cash. And if they couldn’t keep a few hundreds in their purse they would be mad this they would need to hold for $50s.

So I am not surprised they are proposing this but it will take many years for it to actually happen. In Europe and Canada we had big bills like 500 EUR or $1000 Canadian and they were removed since it was mostly used for Crime.

stompix

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Quote from: zasad@ on August 24, 2022, 02:53:11 PM

I used to read the news about it, but didn't take it seriously.

Source for this?

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).

And are you sure this discussion is not just some by-product of the flat earth channel?

Quote from: zasad@ on August 24, 2022, 02:53:11 PM

It's not a quick process, but it's rumored to start later this year.

Of course, just after we welcome the alien visitors from Vulpecula later in November and we finish clonning mammoths early enough to replace Santa's reindeer.

Quote from: Ozero on August 24, 2022, 03:30:25 PM

I have also heard earlier about this US possibility as a financial blow to Russia. Hundred dollar bills are the most common outside the US. If they are invalidated, it will instantly undermine the financial strength of many states.

Some random columnist flaunting around stupid ideas is just nothing, besides, that article out back in May, as you can see is August and nobody treats it seriously other than in some "discussions" and "rumors".
For anyone interested, this is the article in question:
https://www.wsj.com/articles/for-russia-benjamins-moscow-putin-sanctions-100-dollar-rubles-bankers-treasury-war-ukraine-larry-summers-11652125119?mod=opinion_major_pos6

Also, just as funny as this, we had the same topic about Nigeria retiring all the Niara notes:
https://bitcointalksearch.org/topic/cbn-to-stop-circulation-of-naira-note-5399596
how is the removal going?

electronicash

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Quote from: Hydrogen on August 24, 2022, 06:01:26 PM

Removing $100 is perhaps a good method to accelerate the demise of the US dollar as an international reserve currency.

Possibly paving the way for the russian ruble to become the new international reserve? Somehow, I don't think Putin would mind if this happened.

Foreign banks and those outside the USA holding $100 in reserves would probably be most affected. They could have the hardest time exchanging their $100 holdings if a ban were announced.

India imposed similar cash bans. Which, as far as I know, had negative effects upon their economy. And diminished trust in their banking and monetary system.

The poor and unbanked are also usually hardest hit by these measures, AFAIK.

Russian ruble as international reserve is not likely to happen. i doubt it will be that case. Putin keeps repeating in his speech about multi polar ruling, i think what they want is that US rules the west and east stays east which the USD reserve stays in US soil and in Europe will be somehow EUR or probably the Ruble and an then in the Far east will be Chinese Yuan (RMB).

i have not read the news about $100 circulation removal, no link provided by OP. But probably because Cash is king, but $100 bills are for crooks.

Hydrogen

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Removing $100 is perhaps a good method to accelerate the demise of the US dollar as an international reserve currency.

Possibly paving the way for the russian ruble to become the new international reserve? Somehow, I don't think Putin would mind if this happened.

Foreign banks and those outside the USA holding $100 in reserves would probably be most affected. They could have the hardest time exchanging their $100 holdings if a ban were announced.

India imposed similar cash bans. Which, as far as I know, had negative effects upon their economy. And diminished trust in their banking and monetary system.

The poor and unbanked are also usually hardest hit by these measures, AFAIK.

Topic: Removal of $100 bills from circulation - page 2. (Read 438 times)