The European Central Bank is examining the issue of phasing out the 500 euro note. The bill is considered to be widely used among financial criminals and terrorists; so the ECB is proposing to stop issuing the purple banknote. "We're actively considering the question and will take a decision shortly," executive board member Benoit Coeure pointed out. The politician was also quoted as saying that the authorities increasingly suspect that the notes are being used for illicit purposes, "an argument we cannot ignore given the importance of fighting money laundering and the financing of terrorism," EUbusiness reports.
In the light of this reasoning, arguments for keeping the 500 euro bill seem unconvincing. Even Bundesbank agrees to support the initiative. However, it was the Germans who opposed the idea the most. Pragmatic Germans still prefer cash payments. There is an opinion that a fight against terrorism just hides the real goal of abolishing cash money.
Anyway, the decision will not be taken until May at least. Meanwhile, supporters have time to convince the EU citizens that such actions are necessary. Earlier, Jens Weidmann, president of Germany’s Bundesbank said, “It would be fatal if the current discussion about the abolition of the 500-euro note or a limit on cash payments were to give rise to the impression with the public that cash is being taken away, step by step.”
