The 500 euro, notorious for being used in money laundering and other criminal activities, may finally be withdrawn from circulation.
The note has been controversial for years, largely because it makes it easier to hide substanial amounts of cash and to make large cash transactions on the black market.
Amid reports that “large numbers of the notes are being removed from under matresses” for fear they will lose their value, and swopped for smaller bills, the central European Bank has announced that the 500 euro notes will be withdrawn from circulation.
Increased activity has also been reported at banks where customers have been changing the large notes for smaller currency.
However, the established norms in the fight against money laundering obliges any financial institution to report all transactions in 500 euro notes of more than 3,000 euros.
It is estimated that there are 34,000 million euros of “black money” in large bills hidden throughout Spain, which will have to see the light of day if the decision of the BCE is confirmed.
