Removal of $100 bills from circulation

[Hispo]

Unlikely but not impossible, in the end it is just a rumor.
But it would undoubtly be a strategy for USA government to push their plans of CBDC adoption, however, such operation would be very expensive and it would take years to be executed, there is a lot of 100$ bills on this planet and even if they gave a flexible deadline it would be a nightmare for common people to exchange their bills, specially in countries where there is a de facto dollarization but not de jure, Venezuela and Zimbabwe are good examples.

For now, I'll  assume this is just a rumor and nothing will happen this year, perhaps in the future but in my opinion to carry out something like it this very year would be a recipe for chaos considering the behavior of economies worldwide.

[dark1234]

the abolition of the $100 US bill, whether it's a rumor or indeed a plan that might be implemented soon, because I haven't found the source of the news myself in the media, but basically the elimination of 100 $ is the right thing because these banknotes are rarely used and large transactions already use digital money

[DaveF]

They also last more then 2 decades:
https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm

So lets say they bounce it around and decide to stop printing them in 2027, which is 5 years from now. That is easily well into the 2050s before they really start to disappear.
There are still $500 and $1000 bills out there that are still legal tender, but good luck getting them out of the hands of collectors for anything close to that:

https://www.ebay.com/sch/i.html?_from=R40&_nkw=%241000+bill&_sacat=0&rt=nc&LH_Sold=1&LH_Complete=1

I think my parents still have a $500 and $1000 framed set someplace. Might have gone to my sister.

-Dave

[bitbollo]

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

There were discussions to stop the 500 EUR bills from circulation because they're too big for average Joe and only help those earning money from illegal things carry that money easier. And the 500 EUR bill is still in circulation, just no new banknotes are being printed.

The 100$ is not that big. And I also don't think that anybody would admit they are removing the 100$ bills from circulation to favor CBDCs. So unless they come with a better story I don't think they'll do it. And even then.. it'll take many years until the 100$ bill gets retired.

I didn't understand how they can ban 100$ bills also here in Europe

about the 500 euro ... it's really really hard you can get a 500 euro bill. Of course no, ATM will not provide it.
In my country, Italy, you should have some "good friend" in the local bank.
At maximum you can get a couple of these notes each week, just because these are provided just few pieces to banks.
You must have a friend and probably he want "something back" (like some help or maybe a cut...)
 
I have used sometimes 200 euro banknotes "in real life" but each time shoppers are checking for a while because they see really few of these: you seem like an alien and it's really uncommon for any expense.

I think no one will pay something with 500 euro. These notes are already "removed" from circulation at least in the real life expense.

BTW I am really curious to see the real effect of "digital money" here in my country . Probably it will be the good chance for crypto to become mainstream.

[hatshepsut93]

No way this is going to happen, the world, including the West is currently in crisis, why would their governments do something so risky? To move to a digital currency that doesn't exist yet? And why people so quick to assume that governments want this digital currency? It would create quite some headache for them if some people will not use it, for example the elderly who are not good at using electronic devises.

[philipma1957]

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

I have also heard earlier about this US possibility as a financial blow to Russia. Hundred dollar bills are the most common outside the US. If they are invalidated, it will instantly undermine the financial strength of many states. Apparently, US-friendly states in this case will be provided with an approximately equivalent replacement with either digital currencies or new samples of one hundred dollar bills. This is a very interesting initiative. However, on the other hand, this will mean that the United States should not be trusted in the matter of finances.

USA laid the ground work for this years ago.

They have issued 3 or 4 changes in their money.

They now simply can pull older ones off the list of "good money".  


https://www.uscurrency.gov/denominations/100

2013 to now

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-2013-present-features-en.pdf

1996 to 2013

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1996-2013-features-en.pdf

1990 to 1996


https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1990-1996-features-en.pdf



1914 to 1990

https://www.uscurrency.gov/sites/default/files/downloadable-materials/files/en/100-1914-1990-features-en.pdf

[NeuroticFish]

I have used sometimes 200 euro banknotes "in real life" but each time shoppers are checking for a while because they see really few of these: you seem like an alien and it's really uncommon for any expense.

Yep, but this can work with the rather uncommon big banknotes. The 100 EUR and 100$ ones are pretty much common (although I indeed find the 50 EUR much more heavily used than the 100) and getting them out may not got as easy as with the uncommon (from the first place) ones.

BTW I am really curious to see the real effect of "digital money" here in my country . Probably it will be the good chance for crypto to become mainstream.

It heavily depends on govt narrative. They can push CBDCs and still tell that bitcoin is dirty money, or it consumes the so beloved electricity (I'm already expecting news that people will suffer in the winter because of bitcoin).
So no, I think that CBDCs will have very limited "good" effect on bitcoin getting mainstream.

[DrBeer]

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

Quite expected and logical process. It's like moving from a currency in the form of cowrie shells to paper and iron money

I would name 3 arguments in favor of this decision. From less obvious to more:

1. Expensive cash service. Yes, money costs MONEY. And a lot of complex and unsafe processes. Cash service, collection, storage of money, cash places, etc. - these are huge costs for the state, business, people ... Honestly - specify, for the sake of interest, how much does it cost for a large network to "serve money" per year? And how much you have to invest in solutions that don't bring profit, such as cash register equipment, storage facilities, etc. You will be greatly surprised! And most importantly, these costs ultimately fall on the wallets of buyers, us!

2. Security \ Legality. The question is extremely simple and understandable. Cash has always been and remains the main entity that is the target of scammers. I hope there is no need to explain. The second side of this problem is corruption. It is mostly based on cash. As well as crime. Controlled digital money - if not a panacea, then a solution that will greatly complicate the lives of these groups (thieves, criminals, corrupt officials)

3. Technological side. After all, we are already living in the 21st century, and carrying a “bag of money” or a “pack of money” with us is becoming more and more inconvenient and illogical. The first step was taken more than half a century ago - with debit or credit cards, which made non-cash payments a means not only for companies, but also for individuals. But this system was still based on cash - ATMs, shops that work only with cash, etc. Now we are reaching the next level - a complete departure from cash and fiat money.

[Obito]

I don't think US will be able to go full digital because they're the biggest currency used for foreign exchange and not a lot of countries will be able to do a full revamp their currency because it's expensive especially for poor countries, imagine South Sudan going digital when their most basic of infrastructure are destroyed or not yet built because they still have a civil war.

[Betwrong]

They also last more then 2 decades:
https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm

So lets say they bounce it around and decide to stop printing them in 2027, which is 5 years from now. That is easily well into the 2050s before they really start to disappear.
There are still $500 and $1000 bills out there that are still legal tender, but good luck getting them out of the hands of collectors for anything close to that:

https://www.ebay.com/sch/i.html?_from=R40&_nkw=%241000+bill&_sacat=0&rt=nc&LH_Sold=1&LH_Complete=1

I think my parents still have a $500 and $1000 framed set someplace. Might have gone to my sister.

-Dave

I went with the link to eBay which you provided, and there's nothing there except some paper garbage with Trump on it, that is not legal tender. But, indeed, there were large-denomination banknotes issued in the USA, you can see all of them following the link below:

https://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency

And, yeah, you are right, today they cost much more than their denomination




As for removal of $100 bills from circulation, it will never happen. Not in our lifetime anyway.

[zasad@]

About 20 years ago, most businessmen used cash, because for cash the price of goods was always cheaper by 3-8%. This is how business worked in Russia, and even now there are not so many changes.
There were many professions, and there were people who carried cash abroad or back. These are couriers, security guards, logisticians who organized routes. Now these people are unemployed. In any country there are shadow markets for exchanging cryptocurrency for cash.Regulators will wean the new generation from the cache, and when everyone gets used to cryptocurrencies and CBDC, this area will be tightly controlled. The big question is, how much time do we have left?

[DaveF]

I went with the link to eBay which you provided, and there's nothing there except some paper garbage with Trump on it, that is not legal tender. But, indeed, there were large-denomination banknotes issued in the USA, you can see all of them following the link below:

https://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency

And, yeah, you are right, today they cost much more than their denomination




As for removal of $100 bills from circulation, it will never happen. Not in our lifetime anyway.

Hmmm, this is what I get from the link:



Could be logged into ebay vs not or even location, but as we agree there is a nice trade in the bills.
Not knowing your age the 'not in our lifetimes' is a tough call.

More and more cash is going 'subprime' no rewards, no security, larger chance of loss.
Yes it's anonymous and private, but if I get paid from my job by check / direct deposit I can pull cash out and pay for things but I loose the cash back % of any credit card I use, the warranty extension that a lot of cards offer, the security of knowing that if I loose my card I am really not out any money and so on.

Thinking about it the last time I used / had a $100 [outside of a casino] was when someone bought my old motorcycle and even then it was mostly $20s with a couple of $100s thrown in.

-Dave

[zasad@]

How are things going with the implementation of CBDC by different countries at the moment:



Based on this infographic, CBDCs are currently being developed by over 100 countries. Some countries, including Ecuador, Senegal, Denmark, have decided to cancel the development and launch of their own CBDCs. The main part of the countries is either in the status of Research or Development. But still, compared to 2020, the development of this area is rapid. 2 years ago the map looked like this:

Data: report BIS oт aвгycтa 2020 гoдa.

Thanks Ratimov.
This is one of the reasons why the world's cash will become much less. Even in Russia, in 2023, the digital ruble will be launched into the test network. And for some reason I am sure that Google and Apple will not interfere with this, despite all the sanctions.

[fullhdpixel]

About 20 years ago, most businessmen used cash, because for cash the price of goods was always cheaper by 3-8%. This is how business worked in Russia, and even now there are not so many changes.
There were many professions, and there were people who carried cash abroad or back. These are couriers, security guards, logisticians who organized routes. Now these people are unemployed. In any country there are shadow markets for exchanging cryptocurrency for cash.Regulators will wean the new generation from the cache, and when everyone gets used to cryptocurrencies and CBDC, this area will be tightly controlled. The big question is, how much time do we have left?

They use cash because digital payments that time are not yet popular. Paypal started in 1998 but it became more popular and widely used online or offline on 2002. Credits to google for that. I know there are other payment methods like gold which can also be used as a medium of exchange but maybe cash is more convenient and also back on that time, the inflation is not that heavy as when compared to today when the purchasing power of our cash now had greatly lessened.

Anyway, they ban the 100 dollar bill and they are doing this to promote their cbdc? But, it'll be more effective if they will also ban other lower denominations.

[zasad@]

About 20 years ago, most businessmen used cash, because for cash the price of goods was always cheaper by 3-8%. This is how business worked in Russia, and even now there are not so many changes.
There were many professions, and there were people who carried cash abroad or back. These are couriers, security guards, logisticians who organized routes. Now these people are unemployed. In any country there are shadow markets for exchanging cryptocurrency for cash.Regulators will wean the new generation from the cache, and when everyone gets used to cryptocurrencies and CBDC, this area will be tightly controlled. The big question is, how much time do we have left?

They use cash because digital payments that time are not yet popular. Paypal started in 1998 but it became more popular and widely used online or offline on 2002. Credits to google for that. I know there are other payment methods like gold which can also be used as a medium of exchange but maybe cash is more convenient and also back on that time, the inflation is not that heavy as when compared to today when the purchasing power of our cash now had greatly lessened.

Anyway, they ban the 100 dollar bill and they are doing this to promote their cbdc? But, it'll be more effective if they will also ban other lower denominations.

I think that this will happen gradually and there will be no direct cash bans, but such situations will be created so that people themselves refuse cash.
Lack of cash will make robberies useless.
1,000,000 dollars ($100 bills) weighs 10 kilograms.
1,000,000 dollars ($20 bill) weighs 50 kilograms

I will tell you many stories about gold. It is expensive to buy coins in a bank, because they are 3-4 times more expensive than the cost of the same gold. And if the packaging is damaged, you will sell them only at the price of gold. Some people bought gold after the cryptocurrency hype of 2017, but then it turned out that they did not have gold, but gold-plated metal. So the scammers deceived many crypto-investors who made money on that hype.

[teosanru]

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).
It's not a quick process, but it's rumored to start later this year.
I'm interested in hearing your opinion on this issue.

I think it makes sense as well if you are going to digitize the whole currency of your country, slowly removing currency notes is very important only then you'll be able to digitize your whole economy, but yes CBDC is definitely not the optimum solution to replace dollar bills. Also removing higher dollar bills is always better in order to curb corruption also as well. It prevents hoarding of cash currency because you will have to keep a big chunk of dollar bills to keep even small values in cash. But I think something as simple as UPI can solve the issues of cash usage there is no need of CBDC in order to digitize the economy.

[onlinehandelen]

This caught my attention. In the EU they removed 500 euro notes, but I can't easily accept this post saying that the USA will remove $100 bills from circulation. $100 is already a pretty ''low'' note, to be honest, it's not that there's a $500 note. If this is true and $50 becomes the new highest USD-denominated bill, this should say something about the economy... 

[DrBeer]

They also last more then 2 decades:
https://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm
So lets say they bounce it around and decide to stop printing them in 2027, which is 5 years from now. That is easily well into the 2050s before they really start to disappear.
There are still $500 and $1000 bills out there that are still legal tender, but good luck getting them out of the hands of collectors for anything close to that:
https://www.ebay.com/sch/i.html?_from=R40&_nkw=%241000+bill&_sacat=0&rt=nc&LH_Sold=1&LH_Complete=1
I think my parents still have a $500 and $1000 framed set someplace. Might have gone to my sister.
-Dave

Once engaged in numismatics and bonnistics, and studied information accordingly. Yes, in the USA there were 1000 dollar bills and much larger ones, for example 100,000 dollars. But they all had a special purpose. Although they were also absolutely official means of payment. And if you now have a bill of 100,000 dollars, we can officially pay it!
But here we are talking about something else - we are talking about the fact that 100 dollar bills will be withdrawn from the general circulation, as, for example, in the EU, they stopped issuing and withdraw 500 euro bills from normal circulation.
For some time they will still be accepted in circulation, but at some point, they will most likely offer to exchange or credit to a card account. I do not exclude that with the requirement to indicate the sources of income and savings

[NotATether]

I used to read the news about it, but didn't take it seriously. But recently I heard a discussion that 100 dollar bills will be banned in a number of countries, and then in the USA and Europe, fiat will gradually be replaced by digital money(CBDC).

This will never work, because:

1. $100 bills are not too big for the average Joe
2. Most citizens are too tech-illiterate to use CDBCs as an app. I mean, the only practical integration method for this is to replace banks' in-house traditional systems with a CDBC blockchain. It won't make a difference to the customer, they'll still get a card.

[Poker Player]

This will never work, because:

1. $100 bills are not too big for the average Joe

On this I agree, and as time goes by and inflation has a compound interest rate, the purchasing power of the $100 bills is less.

2. Most citizens are too tech-illiterate to use CDBCs as an app. I mean, the only practical integration method for this is to replace banks' in-house traditional systems with a CDBC blockchain. It won't make a difference to the customer, they'll still get a card.

Here I do not agree. The day will come when everyone will use it. I also thought that I would not see people over 80 years old sending Whatsaps, reading the newspaper or using the bank with the mobile and I already know several cases.