European Central Bank will Phase Out €500 Note by 2018

European Central Bank will Phase Out €500 Note by 2018

Bigger the note better it is for money launderers and other criminals and keeping that in mind the European Central Bank decided to phase out 500-euro notes. On Wednesday, the European Central Bank announced that it will discontinue with _500 note which is worth roughly $575. The larger denominations are easier to carry and suitcase full could value a lot more than the smaller denominations. A study by Harvard University shows, that equivalent of $1 million in _500 notes only would weigh approximately five pounds. The larger denomination is more compact and handy for escaping the eyes of the authorities.

The bigger denomination of the currency in circulated widely and is easy to convert. The largest denomination in the United States is $100. In 1969, the U. S central bank discontinued higher denominations like $500, $1,000, $5,000 and $10,000. As of now, Switzerland still issues a 1,000-franc note which is equivalent to almost $1,050, but it is not widely available.

By the end of 2018, the European Central Bank plans to phase out the _500 note and thereafter the biggest denomination will be _200. That means the equivalent of $1 million will weigh about two and half times more compared to the _500 notes and will be difficult to carry.

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