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View Poll Results: Should we have a $200 or $500 bill?
Yes, both a $200 bill and a $500 bill 16 19.05%
Yes, but only a $500 bill 15 17.86%
Yes, but only a $200 bill 3 3.57%
No, things are fine as they are. 50 59.52%
Voters: 84. You may not vote on this poll

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Old 03-24-2019, 01:39 AM
 
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Quote:
Originally Posted by MI-Roger View Post
Just try to buy a decent used car from a private seller. A car costing $7,000 will require the Buyer to carry a wad of seventy $100 bills to the transaction point.
Quote:
Originally Posted by MrRational View Post
I think that smugglers and dope dealers will appreciate being able to use smaller bags to carry $1M worth of notes.
The ease of transport for money laundering argument is heavily used. Not surprisingly, it is the same argument used by the gentleman who wants to buy a used car. They both want to transport fewer bills.

To transport a million dollars in $100 bills means the bills weigh 22 lb, so as a practical matter you are talking about one armored suitcase possibly handcuffed to your arm. If we had a $1000 banknote, you would only need 2.2 lbs of banknotes, and you could probably sew them into the lining of your coat without making an appreciable lump.

That said, transport is only one portion of money laundering. There are now more $100 banknotes in circulation than $1 banknotes. While you may not be able to spend a $100 bill at a late night convenience store, they are not really that rare and it is easy to circulate them into the general economy. The BEP could afford a whole lot more anti-counterfeiting devices in a $1000 banknote, and they would be very difficult to spend.

So, anecdotes aside, I bet a lot more money laundering is done with €50 banknotes instead of €500 banknotes simply because there are twenty times as many of them in circulation, and they are very easy to dispose of.
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Old 03-24-2019, 10:54 PM
 
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Quote:
Originally Posted by MI-Roger View Post
Just try to buy a decent used car from a private seller. A car costing $7,000 will require the Buyer to carry a wad of seventy $100 bills to the transaction point.

Cashier's Checks are widely counterfeited since there is no one single standard they must match. No one will accept a Personal Check for obvious reasons.

Yes, the US needs to reissue the $500 bill.
Um, electronic transactions? Why would I carry $7000 of cash (whether it be small bills or larger bills)? That's ridiculous. Electronic transactions are instant.
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Old 03-25-2019, 02:02 AM
 
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Quote:
Originally Posted by Mr.Hospitality View Post
Electronic transactions are instant.
Actually, in the USA only credit card transactions are instant. Most of the time electronic transfers of money can be quite time consuming.

I think we learned from Scandinavia that certain steps have to be taken. First of all checks have to abolished. Second of all there must be an electronic identification used by nearly everyone in the country. Only once BankID is established can you develop apps for instant electronic transfers from one personal bank account to another. Only then can the role of cash begin to diminish

In the case of a person to person transaction for $7K for a used car, most people are unequipped to carry this out without cash. You can buy a used car from a business without cash, but not from another individual.



===================
References

BankID is the leading electronic identification in Sweden. BankID has been developed by a number of large banks for use by members of the public, authorities and companies. The first BankID was issued in 2003. The BankID network includes Danske Bank, ICA Banken, Ikano Bank, Länsförsäkringar Bank, Nordea, SEB, Skandiabanken, Sparbanken Syd, Svenska Handelsbanken, Swedbank and Ålandsbanken. 8 million people use BankID on a regular basis for a wide variety of private and public services.

The Committee on Payments and Market Infrastructures (CPMI) at the Bank for International Settlements in Geneva promotes the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy.
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Old 03-25-2019, 07:04 AM
 
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It wont ever happen. The reason we have smaller bills today is to reduce trafficking large sums of money.
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Old 03-25-2019, 07:51 AM
 
1,281 posts, read 445,161 times
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Quote:
Originally Posted by Snowpacked View Post
It wont ever happen. The reason we have smaller bills today is to reduce trafficking large sums of money.
And if you have the ability to obtain a credit card, why carry cash?

They are without yearly fees, fully guaranteed against fraudulent use, you have 30 days to pay, a permanent record, some with extended warranty’s and you can earn cash or other rewards!

As far as I’m concerned, it’s the only way to go❗️
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Old 03-25-2019, 12:06 PM
 
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On July 14, 1969, the Department of the Treasury and the Federal Reserve System announced that currency notes in denominations of $500, $1,000, $5,000, and $10,000 would be discontinued immediately due to lack of use. Although they were issued until 1969, they were last printed in 1945. Today $100 has the same buying power as $14.56 in July 1969 according to the Bureau of Labor and statistics

Quote:
Originally Posted by Snowpacked View Post
It wont ever happen. The reason we have smaller bills today is to reduce trafficking large sums of money.
In July 1969 we were circulating $44,548 billion in federal reserve notes so for a population of just over 200 million, that was less than $220 per inhabitant. A hundred dollar bill was a pile of money. Today we are circulating over $5000 in banknotes per inhabitant.

Yes, we could eliminate all banknotes higher than $20 and that would make money laundering using cash nearly impossible, and it would have little or no effect on a large percentage of the population that never uses anything higher than a $20 banknote.

There has to be a balance between ease of making legal transactions, and restrictions that make illegal ones more cumbersome. Certainly in 1969 when the Federal Reserve was circulating $220 per inhabitant in Federal Reserve banknotes, a $500 bill was a lot of money, but today it is not so much.

Canada eliminated their $1000 banknote in the year 2000, and Euro Area is not renewing their 500 Euro banknote in May when the new 100 and 200 Euro banknotes are being issued. But Switzerland just issued a new 1000CHF banknote (worth ~$1000) which will be valid for 40 years.

=====
"Eliminate" means two different things in some countries in Europe than it does in the USA. When Sweden, Norway, Britain, Denmark or Switzerland issues a new banknote, after a year or two the old banknotes are no longer legal tender and cannot be spent. But they can often be turned into banks for a longer period time. When the USA or Canada issues a new banknote the old banknotes are legal tender forever. But the commercial banks send the old banknotes to the BEP where they are destroyed. If you find a box of some of the 188,160,000 1974 series of small headed $100 banknotes under the floorboard in your basement, you may have trouble spending them in a store, but you can always deposit them into a bank where they will be sent to the BEP to be destroyed.

In Canada, the polymer $100 note was issued on November 14, 2011. Although you might have trouble spending an old paper $100 banknotes in a store, you can deposit them in a bank forever. Same way with the over 700,000 still circulating Canadian $100 bills that were not issued after the year 2000.

In Switzerland the 1000CHF banknotes printed before 4 April 1978 are no longer legal tender, but can still be exchanged for current banknotes – that is, until May 1st 2020 when any unexchanged notes will become worthless. According to the SNB’s 2017 annual report there are still some 1.1 billion francs in 1970s banknotes unaccounted for. When the time limit is reached, the value of the outstanding notes will not be lost – it will be given to a national fund dealing with natural disasters.
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Old 03-25-2019, 08:31 PM
 
1,043 posts, read 541,583 times
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Quote:
Originally Posted by PacoMartin View Post
Actually, in the USA only credit card transactions are instant. Most of the time electronic transfers of money can be quite time consuming.

I think we learned from Scandinavia that certain steps have to be taken. First of all checks have to abolished. Second of all there must be an electronic identification used by nearly everyone in the country. Only once BankID is established can you develop apps for instant electronic transfers from one personal bank account to another. Only then can the role of cash begin to diminish

In the case of a person to person transaction for $7K for a used car, most people are unequipped to carry this out without cash. You can buy a used car from a business without cash, but not from another individual.



===================
References

BankID is the leading electronic identification in Sweden. BankID has been developed by a number of large banks for use by members of the public, authorities and companies. The first BankID was issued in 2003. The BankID network includes Danske Bank, ICA Banken, Ikano Bank, Länsförsäkringar Bank, Nordea, SEB, Skandiabanken, Sparbanken Syd, Svenska Handelsbanken, Swedbank and Ålandsbanken. 8 million people use BankID on a regular basis for a wide variety of private and public services.

The Committee on Payments and Market Infrastructures (CPMI) at the Bank for International Settlements in Geneva promotes the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy.
This is not true at all. Look up a company called PayPal... and their subsidiary, Venmo. They instantly transfer money.
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Old 03-25-2019, 09:33 PM
 
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Quote:
Originally Posted by IDoPhysicsPhD View Post
This is not true at all. Look up a company called PayPal... and their subsidiary, Venmo. They instantly transfer money.
What I said was most of the time electronic transfers of money can be quite time consuming. Two people with PayPal accounts can do instant transfers. But most people keep money in a bank account.

But in Sweden, Denmark or Norway any two people with bank accounts can do a person to person instant cash transfer. There is no need for a third party company to get involved.
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Old 03-25-2019, 10:06 PM
 
1,080 posts, read 507,415 times
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Quote:
Originally Posted by PacoMartin View Post
What I said was most of the time electronic transfers of money can be quite time consuming. Two people with PayPal accounts can do instant transfers. But most people keep money in a bank account.

But in Sweden, Denmark or Norway any two people with bank accounts can do a person to person instant cash transfer. There is no need for a third party company to get involved.
You said more than that:

Quote:
Originally Posted by PacoMartin View Post
Actually, in the USA only credit card transactions are instant.
Whether people keep the money in their PayPal account or not is irrelevant. Whether third parties are involved is also irrelevant. Instant is instant (all intents and purposes) with PayPal. You send the money to another person, and they have access to it (electronically or as cash if they are near an ATM or bank).

It's similar to doing instant transfers from bank to bank (as we do here in the US).
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Old Today, 07:29 PM
 
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Quote:
Safe, Free, Instant and mobile first: Mobile payment is nothing new. Companies like Paypal, Venmo, Square cash, Facebook Messenger, SnapCash or Leetchi (Owned by Crédit Mutuel Arkéa) let you send money to your family and friends via your mobile. However, none of them offer a smoother product than Swish. Some have transaction fees if used with a credit card such as Vemno, some have security concerns, most of them do not offer instant transfer (Square Cash) and some do not have an intuitive mobile app. Swish has been able to offer a simple and well executed product to its users. As long as you trust BankID (the banking payment infrastructure) you are good to go.

Swish, the secret Swedish FinTech payment company created by Nordic banks and used by 50% of Swedes is challenging Swedish unicorns
The latest figures from FED show 13.434 billion hundred dollar bills in circulation, compared to 12.4 billion one dollar bill and 9.4 billion twenty dollar bills. Of course, possibly as many as 80% of the Benjamins are circulating overseas.

Every major currency circulates outside of its home jurisdiction: the Euro, the Japanese Yen, the Canadian and Australian dollar. But none of them are in the same ballpark as the US $100 bill.


Riksbank Banknotes in circulation 2019-03-31
Value per denomination
DENOMINATION SEK MILLIONS
20: 996
50: 890
100: 2871
200: 5040
500: 37702
1000: 3213
Invalid banknotes* 5783
Total 56494

500 SEK banknote is worth about 50 Euros. Looking at the stats for this banknote (primary note for ATM usage)
37702 SEK Millions or the Swedish population of 10 million means 3770 per person or 377 Euros per person
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