War on Cash: Australia wants to ban the $100 bill

The Australian government has proposed abolishing the nation’s highest-denominated banknote: the $100 bill. This is just a step further in the war on cash.

As part of efforts to clamp down on the black economy and tax evasion – the two most popular excuses among governments and politicians – Australia’s Revenue and Financial Services Minister Kelly O’Dwyer has started a review of the $100 banknote and other cash payments over specific limits outlined by the government.

O’Dwyer wants to ensure, by using a task force, that the Australian government has the ability to shut down any “loopholes.”

“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” she said, adding that there are three times as many $100 bills in circulation than $5 banknotes.

Today, there are 300 million $100 banknotes in circulation. Meanwhile, 92 percent of of all currency by value is $50 and $100 bills, which does make sense because of rampant price inflation.

This comes as the UBS recently recommended Australia to ban the $100 bill in order to boost tax revenues, reduce crime and slash welfare fraud.

“From the banks’ perspective there would likely be a spike in deposits — if all the $100 notes were deposited into banks (ignoring hoarded $50 notes), household deposits would rise around four per cent,” the report said.

All of this is prompting Zero Hedge to ask: will there be no cash in 10 years?

Governments, politicians, banks and the elite would certainly love that; better surveillance and tracking, forced entry into the banking system and more control.