In his book “the Curse of CashMoney in physical form such as banknotes and coins. More”, Kenneth Rogoff, Professor of economics at Harvard University, defends the idea that large denominations should be withdrawn from circulation, thus creating what he calls a “less-cash society”. Nevertheless, in a recent article for Bloomberg, he emphasized that he does not advocate for the elimination of banknotes and coins and is not in favour of a fully cashless society.
Professor Rogoff believes that large denominationEach individual value in a series of banknotes or coins. More banknotes are almost exclusively used by criminals, terrorists and tax evaders and that they are thus unnecessary for retail transactions. He estimates that large notes do not benefit the legal economy, stating the example of the ECB’s 2016 decision to gradually withdraw the €500 banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More from circulation. Furthermore, Rogoff hardly supports cryptocurrencies and believes that they would not be a good substitute to large banknotes in the long run.
To read Kenneth Rogoff’s original article, click here.