Head of ECB’s currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More management division, Doris Schneeberger, made her stance clear during the Future of CashMoney in physical form such as banknotes and coins. More Conference, held 11-12 April 2016, in Paris. She stated there is “no statistically demonstrable link between crime and the use of cash” – a comment that comes at the height of the EU’s discussions on whether to abolish Europe’s highest denominationEach individual value in a series of banknotes or coins. More 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, the 500-euro note.
Schneeberger’s arguments are supported by facts. For example, the shadow economy in Sweden is greater than in Germany – and this despite it often being praised as a country on the brink of going cashless. Furthermore, following the financial crisis, there was a net increase in 500-euro note usage in Greece, pointing to another issue: cash being a secure 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 in times of uncertainty.
Alain Gerbier of the Banque de France presented statistics proving an overall growth in cash usage – 6.1% in France and 5.1% in the Eurozone – suggesting that cash is here to stay.
To read the full article, please click here (original in German).