Unlike many Ministries of Finance in different countries that seek as a solution to add digits or zeros to their currencies, in Europe they take totally contrary measures. As of January 27, this year, 17 of 19 national central banks in the euro area will stop issuing 500-euro notes, the remaining two (the Deutsche Bundesbank and the Oesterreichische Nationalbank) will continue their issuance until April 26, to ensure a smooth transition and for logistical reasons.
The 500-euro bills will continue to be legal tender and may continue to be used as a means of payment and deposit of value, that is, to buy and save. Until they disappear naturally, as each bill that reaches banks will be withdrawn from circulation.
According to the bank of Spain, the measure was created among other things to prevent money laundering, tax fraud, arms or drug trafficking, as well as terrorist financing. Well before the great crisis in Europe, the tickets of this denomination became quite popular to the point that 1 of every 4 tickets circulating in Europe was 500 euros.
The Spanish bank has also presented other measures on the currencies of the European Union, such as withdrawing the coins of one and two cents, in addition to soon also seek to eradicate circulation of the 200-euro bill, since it is one of the least used by the European population, in 2018 only around 254 million tickets circulated in European territory, unlike the denomination ticket of 50 euros, of which more than 10,110 million tickets circulate.
Finally, many countries in the old continent have understood that the digital transformation of the new generations does not only affect industries such as the games of luck and chance that have constant contact with technology, but everything, because in countries like Denmark , Sweden and Norway more than 90% of purchases are already made with card or mobile devices.
So, experts suggest that in the medium term it will be possible the disappearance of cash, despite this, countries like Germany have been the most reluctant to these changes, it is one of the countries that uses the most cash.
"In a period of 15 to 20 years, the cash could see its end and its total disappearance as the new generations are more in favor of using cards and perform all their transactions digitally" says Juan Fernando Robles, professor of Finance and Banking at CEF
