QUESTION: Dear Martin,
you are very right that govs intend to terminate high denomination euros.
In Germany it has been impossible to pay cash with a €500 note for quite some time now – at least at most of the shops I usually go to on a weekly basis. At the end of last year they exchanged the ATMs in my house bank, so now €500 bills aren´t dispensed any more.
It seems to me the gov is going to cancel these notes completely, i.e. withdraw them from circulation.
What would you advise to people holding €500 notes at home?
Thank you very much in advance.
ANSWER: There will be a cancellation of the €500. That is the rumor behind the curtain. I would convert them as soon as possible to small bills and/or US dollars. There remains a distinct possibility that we will see Europe try to cancel its currency and take up the IMF’ proposal to move toward a cryptocurrency. They are desperate for taxes and they will raise taxes even further. As far as cash is concerned, as we move into 2020, it is time to make changes.