Jean-Pierre Roth, former President of the SNB (Swiss National Bank) and Chairman of BCGE (Banque Cantonale de Genève) has published an opinion pieceIn plural, it is commonly used as synonym for units of banknotes and coins. More on the bank’s website stating that “The decision to stop issuing high-denomination banknotes will receive the blessing of well-meaning souls but it will fail to meet its objective of fighting efficiently against criminality and will have negative side effects.”
Roth emphasizes four reasons why the Swiss National Bank should not drop it’s highest denominationEach individual value in a series of banknotes or coins. More.
Firstly, it will not deter crime or tax evasion as other instruments, including bitcoinBitcoin is commonly said to be a cryptocurrency, a digital means of exchange developed by a set of anonymous authors under the pseudonym of Satoshi Nakamoto, which began operating in 2009 as a community project (Wikipedia type), without the relationship or dependency of any government, state, company or body, and whose value (formed by a complicated system of mathematical algorithms and cryptography) is not supported by any central bank or authority. Bitcoins are essentially accounting entries i... More, are readily available.
Secondly, high-denomination notes are an important store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More, especially for small savers. Their elimination will restrict their freedom and reinforce financial repression through negative intetest rates.
Thirdly, the cost of production of cashMoney in physical form such as banknotes and coins. More would increase and seigniorage decline.
Lastly, if they are no longer issued, the demand for high-denomination notes would increase due to scarcity.
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