ECB prepares abolition of 500 euro bills in front – SPIEGEL ONLINE

In the European Central Bank, there is apparently concrete preparations to abolish the 500-euro note, the highest note of the Euro zone. The reported the “Frankfurter Allgemeine Zeitung”, citing remarks by ECB President Mario Draghi before MEPs.

“We want to make changes, but we want them in an orderly manner,” Draghi explained accordingly as per protocol before European Parliament. It is like no decision with respect to the highest notes. But the discussions in the Governing Board ran for some time and there were “technical work”. Now it was a matter of “how to make a decision on the best penetrated and how to communicate that,” Draghi said aloud “FAZ”.

The decision to abolish the 500-euro bills would meet, in which the heads of the 19 national central banks sit the Governing Council. According to ECB statistics At present, more than 600 million 500-euro notes, worth some € 300 billion in circulation. About a quarter is estimated by the ECB abroad.

Critics warn of “loss of economic freedom”

Background of the plans is the discussion of a restriction of cash payments to corruption and money laundering but also terrorist financing combat. More recently, a group of SPD deputies had therefore made strong for the abolition of the 500-euro note. The federal government also wants to enforce at European level a limit on cash payments in the amount of 5000 Euro. Some critics see it as already the first step towards a total abolition of cash

cash transactions leave little trace -. And therefore are ideal for criminals. More than 100 billion euros per year are “washed” a study of the scientist Kai Bussmann of the University of Halle-Wittenberg in Germany every year. It is all about money from illegal sources such as drug and human trafficking, the preferred flow as cash into the legal economy: in house and apartment purchases, art and antique shops, restaurants and other establishments. This is best done in large denominations, such as the 500-euro bill.

On the other hand refer consumer advocates and liberal politicians to the privacy issues associated with a restriction of cash payments. “For the citizens of any restriction of the use of cash means a loss of personal economic liberty”, says approximately Bundesbank board member Carl-Ludwig Thiele. He doubts the objective: “It should be checked whether the aims and objectives of the fight against crime with an upper limit for cash payments are actually achieved.”