Re:Cash payments above €3000 to be outlawed in Netherlands
by cesarb on Wednesday August 23, 2023 @10:47AM
(#37236876)
> Cash is money. Cash is immune to bank runs.
> If you have $10,000 then you have $10,000.
Playing devil's advocate: that's as long as the denomination doesn't change. Once it changes (for instance Cr$ -> NCr$ -> Cz$ -> NCz$ -> Cr$ -> CR$ -> R$, and I lived through most of these changes), and you're outside of a conversion grace period (when you can take your cash to a bank and exchange it for new notes), your cash is worthless; if I find an old Cr$ bill stashed somewhere (I probably still have some), they're not worth much more than the paper they're printed on. If your money is in a bank, on the other hand, it will always be converted automatically and transparently.
(On the other hand, I also lived through the infamous "confisco da poupança" which froze most of the money in everyone's bank accounts, so I can clearly see the importance of having money outside of the reach of banks. On a third hand, I also lived through the hyperinflation times, and know that having too much of your money not deposited in an interest-bearing bank account or other similarly good investment means it will lose its value quickly.)
> If you have $10,000 then you have $10,000.
Playing devil's advocate: that's as long as the denomination doesn't change. Once it changes (for instance Cr$ -> NCr$ -> Cz$ -> NCz$ -> Cr$ -> CR$ -> R$, and I lived through most of these changes), and you're outside of a conversion grace period (when you can take your cash to a bank and exchange it for new notes), your cash is worthless; if I find an old Cr$ bill stashed somewhere (I probably still have some), they're not worth much more than the paper they're printed on. If your money is in a bank, on the other hand, it will always be converted automatically and transparently.
(On the other hand, I also lived through the infamous "confisco da poupança" which froze most of the money in everyone's bank accounts, so I can clearly see the importance of having money outside of the reach of banks. On a third hand, I also lived through the hyperinflation times, and know that having too much of your money not deposited in an interest-bearing bank account or other similarly good investment means it will lose its value quickly.)