Against coins and notes: Bloomberg calls cashless future

Against coins and notes: Bloomberg calls cashless future
German Economic News | Published: 02:02:16 00:03
http://deutsche-wirtschafts-nachrichten.de/2016/02/04/anti-terror-einsatz-verdaechtige-wohnten-mit-falschen-papieren-in-fluechtlingsheimen/

The financial platform Bloomberg Endorses the campaign against the cash. As it was said in a commentary on Sunday are bills and coins "dirty and dangerous, bulky and expensive, antiquated and so analog." A purely digital payments, Bloomberg admits, however, only works if citizens public authorities could rely.

In an article published on Sunday article Bloomberg calls for the abolition of cash and the introduction of a purely digital payments. the claim on the reader above all with security aspects is justified: auditable transactions could prevent terrorist financing, money laundering, fraud, tax evasion and corruption. Thus, the news portal to voices that called for the abolition or limitation of coins and notes in recent weeks joined. These include Norway's largest bank DNB, the chief economist of the Bank of England, the German economist Peter Bofinger, the SPD and the CEO of Deutsche Bank, John Cryan.

Bloomberg points out the far-reaching possibilities for controlling the monetary policy of the digital payments would provide the central banks. This could present to introduce to stimulate lending no high negative interest rates because customers the anticipated losses in the bank account missed by hoarding cash. "A legal digital currency could solve this problem. The central bank could show banks that want to deposit with cash, with a penalty. (...) This would the incentive to hold cash rather than digital currency eliminate, and allow the central bank to push its key rate below zero and thus push consumption and investment, "writes Bloomberg.

From this it is evident that the main objective of a cash abolition actually may lie in the introduction of repressive measures against the savers. As central banks around the world do not succeed even after years of use ultra-loose monetary policy to stimulate the economy, forms seem to have become necessary financial repression from the perspective of some commentators. Abolition of cash would be tantamount to a loss of control of the property owners on their savings. You could redeploy these only, but not pull out from the financial cycle. Savers will be forced to accept special levies and transaction taxes on their digital assets, or to invest the money at all costs.