Is Spain banning the use of 50 euro banknotes?
There is a massive online rumor that Spain is getting rid of the 50 euro note after news emerged claiming that it was on the verge of disappearing. According to online reports, the banknote's days are numbered as it will be withdrawn in April and that there is no going back. The news on the subject has since been removed, but not before sparking panic that the move would have a detrimental effect on the pockets of thousands of citizens.
However, the claims are not true: The Central Bank of Spain has confirmed that it has not ordered the withdrawal of any banknotes, that all banknotes can continue to be used as usual, and that none of them will lose their value.
She explained where the confusion may have come from: as part of its daily activities, the central bank routinely checks the authenticity and quality of notes returned by credit institutions. Banknotes and coins deemed unfit are withdrawn, destroyed and replaced with new ones, while those in good condition are put back into circulation.
The Bank of Spain said it does this for all denominations, not just the 50 euro, and stressed that even if a banknote is damaged, it does not lose its value and can be exchanged for a new one. “ One reason to keep banknotes in good condition is to make it easier to check their security features ,” the bank said. “Although banknotes are made to last, they usually show signs of wear over time from regular use.”
Indeed, other news reports have been published making this distinction slightly: they say that only a few 50 euro notes will be withdrawn from circulation, rather than a general ban, and explain how old and worn-out banknotes can be exchanged.
Similar false claims have also been circulating in Italy, notably claiming that the European Central Bank (ECB) is banning 50-euro notes in April as part of a strategy to combat money laundering and terrorist financing. However, Italian fact-checkers have now debunked these rumors, stating that neither the ECB nor the Bank of Italy have made any such decision.
The ECB stated that: " Neither the Banco de España nor any other central bank within the euro area has ordered the withdrawal of any euro banknotes or coins. All euro banknotes retain their value and remain in circulation." Rumors of the withdrawal of banknotes are fueled by an overarching disinformation narrative that European countries are trying to abandon cash and replace it with a digital euro.
Some claim that doing so would hand over control of citizens' money to authorities, allowing them to block transactions and have a greater role in people's spending. However, the ECB and other central banks in Europe have repeatedly assured that any digital currency would complement cash, not replace it.
Why replacing banknotes improves financial security
Experts say it is perfectly normal for financial institutions to withdraw and destroy old, damaged banknotes to protect themselves from criminal activity.
"Regular updates of banknotes and their security features are common practice for any central bank," said Rainer Böhme, professor of security and privacy at the University of Innsbruck in Austria. "The practice in the Eurosystem is that old banknotes remain valid payment instruments. There is no need to replace the money under the mattress."
“To my knowledge, every commercial bank does this before restocking ATMs ,” he added. “Which denominations are replaced with priority depends on the trends observed in counterfeiting.” The reason €50 notes tend to be more prone to tampering is that they are easier for criminals to handle in bulk, according to Michael Levi, professor of criminology at Cardiff University in Wales, UK.
“ Of course, the larger the denomination, the easier it is for criminals to store them because they require less space and weight for the value, although they will have to exchange lower denomination notes for 50 euros, as it is unlikely that drug buyers will have them, ” he said.
"Denominations higher than €50 in some jurisdictions may appear suspicious and difficult to exchange," he continued. "Perhaps damaged €50 notes may be more difficult for people to distinguish whether they are genuine or not, and more difficult for automated teller machines to analyze, or they may be more likely to be damaged by the lifestyle of street criminals."
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