To proponents of a cash-free society, the survival of the $100 bill is at best an anachronism, at worst a gift to organised crime. Peter Sands, the former chief executive of UK-based Standard Chartered bank, last week called for the note to be consigned to history, alongside other high-value banknotes beloved of drug barons and kleptocrats. They play little part in the legitimate economy, he argues, but a crucial role in the underground economy.
This may well be the case with extreme examples such as the €500 note, under investigation by the EU Commission for links to terrorism. Many are also suspicious of the SFr1,000 notes stashed in Swiss safe deposit boxes. However, Mr Sands goes further, calling for concerted action by major issuers to phase out any note worth more than about $50.
In doing so, he overstates the likely effect on criminal activity. He also underplays the many legitimate reasons for using higher value notes in emerging markets and in some of the world’s most developed societies.