HIGH-value banknotes maintain received a lot of base press recently. In early February the European Central Bank announced an investigation into the use of the €500 ($549) note; soon afterwards Peter Sands of Harvard University published a report arguing for its withdrawal,along with great bills like the SFr1000 note ($1000) and even the $100 bill. Why are great banknotes falling out of favour?
Swanky shops in central Zurich carry out accept large notes in exchange for posh fountain pens, though they carry out use special machines to check they are not fakes. But trying to pay for a chocolate bar with a large note will be met by funny looks at best, or a flat out refusal at worst. Most places will not accept them,and most Europeans haven't even set eyes on a €500 note. Despite this, central bank statistics reveal that they are peculiarly favorite. 60% of Swiss francs in circulation are in the form of SFr1000 notes, and 30% of cash euros are in €500 notes. Some suspect that most high-denomination notes are in the hands not of anxious savers,but of criminals.
Working out exactly who holds cash is a tricky business; that, after all, or is allotment of...
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Source: economist.com