ECB chief dismisses talk of scrapping cash
[FRANKFURT] European Central Bank president Mario Draghi sought to soothe concerns on Friday that any phasing out of the 500-euro note would lead to the scrapping of cash.
The remarks in a letter come after Mr Draghi was forced on the defensive by a barrage of criticism in Germany, prompted in part by the planned phasing out of the note as well as rock-bottom interest rates.
In the letter to Fabio De Masi, a member of the European Parliament, dated April 18, Mr Draghi wrote that any possibility of ending issuance of the notes was "completely unrelated to another discussion, taking place outside the ECB, about limiting, or even abolishing, the use of cash payments".
"Let me highlight the fact that cash is the only form of legal tender within the euro area," he said.
Eurozone central bank sources have told Reuters that it is likely that the ECB will stop printing the purple 500-euro banknotes but allow those who already have them to keep them.
Germans cherish the use of cash and sometimes hoard large bills.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Israel concerned over possible ICC arrest warrants related to Gaza war
China’s top airlines improve balance sheet in Q1; outlook positive for May Day
G7 reaches deal to exit from coal by 2035
US, Britain urge Hamas to accept Israeli truce proposal
Saudi Arabia says economic revamp momentum intact as plans shift
German inflation creeps up to 2.4% in April