The disappearance of euro banknotes is a hot topic that is being talked about a lot.
Let’s try to understand what is happening and above all who has an interest in all this happening.
Let’s say the decrease progress of banknotes in circulation is a phenomenon that has been going on for some time.
The disappearance of the banknotes
In recent years, the global amount of banknotes in circulation has continuously decreased. But it goes towards a total disappearance of banknotes.
This is obviously something revolutionary which, however, also has considerable dangers. Let’s try to understand this revolution starting from those who have an interest in it happening. Surely the first to want the banknotes to disappear are the banks. Banks are trying to cut costs dramatically right now.
A process that makes many turn up their noses
If the Monte dei Paschi di Siena bank is always at the center of attention for its spending cuts plans, in reality it is all the banks that want to cut costs. As long as there are banknotes and cash banks are forced to have physical branches and ATMs which are very expensive. If money becomes completely digital, there is no longer a need for physical offices and ATMs, so they disappear for the bank practically all costs and consequently only the profit remains. Indeed, on closer inspection, the profit increases because for every transaction made with digital payments, the bank also takes one commission.
The government has the banknotes in its sights
But it is not only the bank that wants the banknotes to disappear. In fact, cash is not traceable and consequently fleeing to the tax authorities for those who use cash is really easy. Those who use cash leave no trace and therefore it is impossible to make them pay taxes unless they spontaneously declare what they have earned. So it is not surprising that cash is in the crosshairs and that they want it to disappear. It should be borne in mind that there are fewer and fewer ATMs and even the bank offices are closed continuously. With increasingly stringent laws, the government aims to dissuade citizens from using cash. For example, as of this July, traders will no longer be able to demand payment in cash otherwise they will be fined. We also keep in mind the threshold for cash payments to 2,000 euros and also the fact that next year it will drop a thousand.
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