Riksbank: Cash Must Be A Protected Legal Right For Good Reason

http://www.talkmarkets.com/content/currenciesforex/riksbank-cash-must-be-a-protected-legal-right-for-good-reason?post=94939&uid=4798

From the article:

Sweden's Riksbank says that cash must be a protected legal right. The central bank of Sweden fears that people will be locked out of the banking system, something I have warned could happen. It is nice to hear it from a central bank, though. A discussion of the shadow economy follows at the end of this article. I am sure that the contribution to GDP by the shadow economy, both legal and illegal, is massive. I am sure that this fact is not lost on central bankers.
Now I can point to the Riksbank as my friends and relatives scoff, and say, see, I told you so. I have been telling them that the existence of cash is important and the talk of banishing it is dangerous and cannot be ignored!
And I have been speaking to the subject of privacy, as all transactions will be tracked in a cashless society. Apparently that is a concern of the Riksbank as well.
Considering that the central bank of Sweden is at the forefront of negative interest on bank reserves, pushing inflation higher for the last three months in a row, it is astounding to me that it wants to protect cash. Most bankers who advocate negative interest on reserves also advocate a cashless society, fearing bank runs. And that could happen if the plunge into negativity is deep enough to be passed on to consumers, and if those consumers believe that those costs are harder to bear than the loss of convenience in maintaining the account.
So, this is a significant political statement on the part of the Riksbank, to seek protection for cash.

 Like the Pay Cash Only Movement page:  https://www.facebook.com/Pay-Cash-Only-Movement-1486591244977682/

The War On Paper Currency Officially Begins: ECB Ends Production Of €500 Bill

http://www.talkmarkets.com/content/news/the-war-on-paper-currency-officially-begins-ecb-ends-production-of-500-bill?post=93498&uid=4798


From the link:

In other words, if overnight the €307 billion worth of €500 bills were eliminated, the notional value of the entire amount of European physical currency in circulation would decline by 30% to €700 billion!

And there you have it: while it may not be banning all European cash outright, we are confident the ECB would be delighted if one third of it was to start, while pretending to be fighting financial crime, terrorism, corruption and drug dealers. 

Of course, what Europe would be truly doing is setting the scene for ever more aggressive NIRP, and by removing the highest denomination bank notes, it would make evading negative that much more difficult and costly (albeit would certainly favor gold).

The ECB is failing. Fight Cashlessness in Europe so it won't come here!


 Like the Pay Cash Only Movement page:  https://www.facebook.com/Pay-Cash-Only-Movement-1486591244977682/