In defense of cash: why we should bring back the $500 note and other big bills

[TexasTowelie]

A world without cash seems wonderful at first glance since it is convenient and fast. You don’t need to withdraw dollars or euros ahead of time. You don’t have to worry about money being lost or stolen. Paying for things with your phone is a breeze.

Many countries around the world are steadily shifting away from cash. Canada, the United Kingdom and Sweden have already largely embraced a cashless society. The U.S. is also steadily making the move, with people holding smaller amounts of cash.

However, the recent string of natural disasters and security breaches at major financial entities exposes a huge flaw in this trend: When the power goes out, telephone lines shut down or account information is stolen, it is impossible to use ATMs, credit or debit cards or mobile payments – no matter how rich you are.

In other words, giving up cash increases the chance of the kind of economic catastrophe that results when people can no longer easily trade for the goods they need and want. The solution to this national security issue is simple: bring back the currently maligned large denomination bills like the $500, which was discontinued in 1969.

Read more: http://www.duncanbanner.com/cnhi_network/in-defense-of-cash-why-we-should-bring-back-the/article_acb7f6b8-3fd0-5b12-b039-beac7180e36f.html

[dhol82]

1. But what good would that do in a disaster?

If you are going to try and buy water, milk, bread etc, they will not cost $500 each. Well, not unless somebody is gouging.
I would hope that essential things would not go beyond minor gouging. Who is going to be able to make change for that large bill?
Better to stock up on small bills, if possible, ahead of whatever is coming.

[MiniMe]

5. Add to that, it is nice to have the cash but it would be hard to get change from a $500 bill

I have had a $100 bill at times, very few times, and it is hard to buy something with it.

[dhol82]

8. Totally

If you are in a disaster zone I would think that 5’s, 10’s, and 20’s would be much more valuable.

[safeinOhio]

2. Banks get their cut.

One to three percent bank ta credit card fees) on every non cash purchase to use your money. If you had a choice of a 3% discount on every purchase, would you be more incline to use cash?

[gvstn]

7. Exactly.

Everytime someone uses a card for a $1 cup of coffee they are paying the bank a fee. Is pulling out a bill that hard? Why should everything be 2-5% higher in price?

[John1956PA]

3. That would be an invitation for counterfeiters to aim higher.

Counterfeit $50s, and now even $20s, are a problem. I will not accept $50s in venues such as sales meets, yard sales, etc., which are conducive to actions of counterfeit money passers.

[MyNameGoesHere]

4. I would feel much better

Rolling on my rescue boat with a 500 in my pocket. Never know when I need to score some caviar or a few bucks for bread.

[L. Coyote]

6. Great idea. Rich people could fly out of country in smaller planes.

And drug lords everywhere could scale down their fleets. Just think of the environmental benefits .... Save a tree, use bigger bills.