I see that the ABC picked up the theme that there are a lot of high value currency notes on issue but most of us rarely see them. As one of the articles linked below states, “Similar to possums in the daytime, we know $100 notes are there somewhere; we just can’t find them”.
As per my earlier post, in spite of the fact that in some ways we seem to be moving towards a “cashless” society – although there’s some way to go yet! – the value of currency notes in circulation is increasing.
Apparently RBA figures showing there are now 11 per cent more $100 notes in circulation than in 2014, a growth rate of almost twice the banknote average. Together, the $50 and $100 notes account for 92 per cent of the value of all banknotes in circulation.
Nevertheless, it seems to me that ceasing to issue $100 just because it’s suspected that some of them are being used for purposes that aren’t quite “right” is a bit heavy-handed. I suspect that tradies will be equally satisfied with $50 notes! However, if negative interest rates become the norm (even though they’re probably not likely for us mums-&-dads), then maybe we’ll need lots of large denomination notes to store under our bed?
And in the longer term, perhaps cryptocurrencies (similar to bitcoin, but perhaps with refinements to make transactions even more difficult to track) will be used to preserve anonymity where this is desired. If so, Austrac may have its work cut out for it.