Cancellation of cash: countries cease to print money

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Wednesday, 21 December 2016 12:26

Most actively in the countries of Scandinavia refuse hard cash. According to Bloomberg edition, Central Bank of Denmark stopped a seal of banknotes and by the end of December will close the last mint. Not only Denmark aims to remove hard cash from turnover, such attempts are done by Sweden and Norway, as well. European Central Bank, Venezuela and India aim to reduce quantity of cash in turnover too, especially it concerns banknotes of high face value which are often used by swindlers.

Let's remind, on November 9, 2016 the government of India withdrew from circulation of the note of 500 and 1,000 rupees. Initiative is aimed at fight against tax avoidance and gradual liquidation of «the black market».

Prime minister of the country Narendra Modi took the population unawares, having declared that all notes of 500 and 1,000 rupees have to be handed over in banks until the end of the year. It became real challenge for 40% of the population as they have no access to banking. Notes which will be withdrawn from circulation make about 86% of all notes in India.

Many countries gradually move to cashless payments, but indisputable leaders in a cashless-race are the countries of Scandinavia. Bloomberg edition notes that Denmark and Sweden are the countries in which the share of cash in turnover is at the lowest level.

Among basic reasons of refusal of cash:

– fight against fraud;

– expense reduction on service of payments;

– desire of merchant to move to cashless payments.

 

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