Aussie bank notes may be on their way out, starting with the $100 note. Investment bank UBS says phasing out the $100 note could help strengthen the banks, lessen crime and expedite the switch to cashless payments.
Analysts at UBS have released a report saying that there are nearly three times as many $100 notes circulating in Australia than $5 notes, but they are “rarely seen”. Additionally, about 92 per cent of the nation’s currency is in $50 and $100 notes.
As the world moves towards a cashless society, the relevance of larger bank notes has fallen into question.
“Given the increasing level of digital transaction penetration we believe Australia could move to remove larger denomination notes.
“Since 2009, ATM transactions are falling at 3.4 per cent per annum while credit card transactions are growing at 7.3 per cent per annum driven by tap-and-go and the NFC (near field communication) technology.”
“We believe removing large denomination notes in Australia would be good for the economy and good for the banks,” UBS said.
Around the world, bank notes are beginning to fall out of favour. This week, India moved to demonetise its two highest denomination bank notes: the Rs1000 and Rs500 notes. India’s Prime Minister Narendra Modi said the move was designed to help reduce corruption and restrain the use of counterfeit money in the country. The Rs1000 and Rs500 notes, while now no longer legal tender, can still be deposited into banks until 30 December.
Should Australia move to phase out the $100 note? Are you prepared for a ‘cashless society’?
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