Is this the beginning of the end for cash? Former Treasury SecretaryLawrence H. Summers wants to stop printing anymore $100 bills. The claim is that these high currency notes are mainly held internationally (The Federal Reserve estimates that at least half of U.S. currency is held internationally), and is used to avoid taxes. True, eliminating high-value currency would increase the cost and difficulty of hoarding cash. But will eliminating paper money prevent people from reporting income? That may give rise to cryptocurrencies (and not just by criminals). Interesting to see how this plays out.
“Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notes.” The paper argues that eliminating high value currencies—such as the 1,000 Swiss franc ($1,013) note, the €500 note and the $100 bill—would reduce corruption and make life harder for tax evaders, terrorists, drug dealers, financial criminals and human traffickers.