The ECB may decide next week to repeal the bill of 500 euros
The European Central Bank may decide on 4 May repealing euro note 500, supports the Reuters news agency quoted a source who has knowledge of the discussions around this topic.
Such a decision of the Governing Council will be further intensified the tension in the relations with Berlin. Germany has always been a proponent of the bill of 500 euros because it is equivalent to the old 1.000marko and why the Germans traditionally prefer to do their transactions with cash rather than plastic money.
If the ECB finally decided in favor of abolition, it is very likely that they will choose a long transitional period. The old notes will not become obsolete, or will be forced those who have them in their possession to exchange, said a second, well-informed source.
The ECB is considering to stop printing banknotes of 500 euros, despite the central bank objections of Germany, on the grounds that they are used by criminals to finance their activities. Critics argue that this operation will not reduce the criminal activity, but on the contrary would violate individual freedoms and reduce the amount of cash in circulation.
Seeking a compromise, the ECB is likely to stop from 2018 to print and give to traffic in paper money of 500 euros, but which will continue to be used indefinitely for transactions. A similar practice was adopted by the Bundesbank, Germany's central bank in 2002, when the Mark was replaced by the euro.
The European Central Bank may decide on 4 May repealing euro note 500, supports the Reuters news agency quoted a source who has knowledge of the discussions around this topic.
Such a decision of the Governing Council will be further intensified the tension in the relations with Berlin. Germany has always been a proponent of the bill of 500 euros because it is equivalent to the old 1.000marko and why the Germans traditionally prefer to do their transactions with cash rather than plastic money.
If the ECB finally decided in favor of abolition, it is very likely that they will choose a long transitional period. The old notes will not become obsolete, or will be forced those who have them in their possession to exchange, said a second, well-informed source.
The ECB is considering to stop printing banknotes of 500 euros, despite the central bank objections of Germany, on the grounds that they are used by criminals to finance their activities. Critics argue that this operation will not reduce the criminal activity, but on the contrary would violate individual freedoms and reduce the amount of cash in circulation.
Seeking a compromise, the ECB is likely to stop from 2018 to print and give to traffic in paper money of 500 euros, but which will continue to be used indefinitely for transactions. A similar practice was adopted by the Bundesbank, Germany's central bank in 2002, when the Mark was replaced by the euro.
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