There's been a mysterious surge in $100 bills in circulation

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CNBC article —

There’s been a mysterious surge in $100 bills in circulation

Excerpts —

  • "It’s time to kill the $100 bill.

  • "A moratorium on printing new high denomination notes would make the world a better place.

  • “Here is a step that will represent a global contribution with only the tiniest impact on legitimate commerce or on government budgets. It may not be a free lunch, but it is a very cheap lunch.”

Lawrence Summers, former treasury secretary
and director of the National Economic Council

  • “The Federal Reserve and Treasury make 99 dollars for every $100 dollar bill they print and sell offshore. There’s a natural desire to keep printing these things — the U.S. government makes a lot of money selling them.”

Nicholas Colas, co-founder of DataTrek Research

1 Like
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"Lawrence Summers, former treasury secretary and director of the National Economic Council in the White House has argued for $100 bill abolition. "

I don’t think that would go over positively for the economy in the US. It might be naive to think that abolishing the $100 bill wouldn’t be followed by a military conflict.

US Dollar has a different function overseas, it makes nearly no sense for foreigners to hold anything except $100 bills.

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I believe that destroying the $100 bills is a good decision, because, on the contrary, it will have a positive impact on the US economy because people will start using contactless payments and paper money will no longer be liquid. Thus, the United States will save its money on the production of paper money. For example, already in 2021, there is a platform like Probill, which is an automated billing software. For example, even my grandmother switched to electronic money, and now she does not need to go out on the street anywhere in order to pay the bills, especially now the COVID-19.

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That was last year, what’s the situation this year?