Photo The European Central Bank will phase out the 500-euro note by the end of 2018. FRANKFURT — A suitcase stuffed full of cash may soon be worth a lot less.
In a move aimed at hampering cash transactions by terrorists, drug dealers and money launderers, the European Central Bank on Wednesday announced an end to the 500-euro bank note, worth roughly $575.
When it comes to moving money nefariously, the €500 note has been especially handy.
It is a large denomination in a widely circulated and easily convertible currency. In the United States, the largest denomination is $100, after the Federal Reserve discontinued the $500, $1,000, $5,000 and $10,000 bills in 1969. Switzerland has a 1,000-franc note, worth about $1,050, but its supply is limited.
The €500 note is also more compact and convenient for evading the gaze of authorities. The equivalent of $1 million, in that high euro note, weighs about five pounds and fits in a small bag, according to a Harvard University study this year.
After the European Central Bank phases out the €500 note by the end of 2018, the next highest denomination will be €200. That same $1 million would weigh roughly two and half times as much.
And using $100 bills is just downright bulky. That would clock in at roughly 22 pounds and require an entire briefcase to carry.
Getting rid of the €500 bill “will make life harder for criminals, raising their costs and increasing their detection risks,” Peter Sands, the lead author of the Harvard study and a former chief executive of the British bank Standard Chartered, wrote in an emailon Wednesday.American law enforcement officials have noted for years that the euro has become the currency of choice for drug cartels. European Central Bank officials acknowledged Wednesday that €500 bills play a role in illegal transactions […]
