500 euro certificate: It remains valid for everyone as long!

500 euro certificate: It remains valid for everyone as long!

Österreich - The 500 euro note, the most valuable printed product of the European Union over two decades, has experienced rapid changes in recent years. The banknote has not been produced since 2019, but its existence in circulation is still considerable. Currently, around 509 million 500 euro notes with a total value of around 254.6 billion euros are deployed, such as finanzenfreak.de reported.

The decision to abolish the certificate was made by the European Central Bank (ECB) in 2016. One reason for this measure was frequent counterfeits and the use of the notes for illegal business, such as money laundering. Despite this decision, the 500 euro certificate remains valid. Owners can continue to pay in the euro area if dealers accept this.

exchange options and value of the cash

The National Bank offers a free exchange of 500 euro notes in smaller notes without a fixed expiration date. This step is intended to make it easier to use this banknote and to secure your validity. While the number of notes actually used is low-only 30 percent of the 500 euro notes are actively used for payments, the rest is obtained-appearance is still accepted as a legal means of payment. According to OE24.at , 22.4 kilograms 500-euro bills result in a value of 10 million required.

Despite the concerns about the use of cash, it remains indispensable for many Germans. A survey shows that over half of the Germans do not want to do without cash. Cash is often used in small amounts and therefore remains an important means of payment in Germany.

The future of cash

In a study by the Bundesbank, the future use of cash will be considered by 2037. This study outlines three possible scenarios for cash use. In the first scenario, the "hyperdigital payment world", cash disappears almost completely, while in the second, the "bargeld renaissance", a return to cash takes place due to crisis experiences. The third scenario describes a "disappearing hybrid payment world" in which the use of cash is heavily dependent on individual living conditions.

key factors for future development are cash acceptance and access to cash. According to the Bundesbank, 93 percent of the respondents would like to be able to decide for themselves in the future whether they will pay for cash or invisible. The Bundesbank plans to strengthen its branch network and intensify cooperation with cash players in order to meet the needs of consumers, while the demand for cashless payment methods, especially in the corona crisis, continues to grow.

The abolition of the 500 euro certificate could be interpreted as the first step towards a complete digitization of payment transactions. However, critics fear that this could further restrict access to cash. In an international comparison, the 500-euro note has the highest value-in the USA the maximum value is $ 100.

Overall, the role of cash in society is still critically questioned, while the importance of digital payment methods increases. The ECB continues to support the 200- and 100 euro notes as part of a diversified cash policy.