€500 is a crazy large denomination. Stuffing as much in as possible does make sense. In to ATMs. Central banks have crazy trouble bringing new notes into cir

€500 is a crazy large denomination. Stuffing as much in as possible does make sense. In to ATMs. Central banks have crazy trouble bringing new notes into circulation, and it costs as much to fill an ATM with 1000 €5 notes as it does to fill it with as many €20 notes. Why should a bank fill in ATM with 5s when it can fill it with 20s? Incentives, for sure. IIRC 5s had an average life of 3 months in circulation, though the linked article suggests is is now 6 months. Larger value notes have a longer life (because smaller notes exist). Banks have a lot of incentive to push higher value notes into ATMs, while central banks have a big desire no not let this happen all of the time. If you're a larger business and have a good relationship with your bank, you're likely able to gain a discount on fees or the price of cash for your effort to get smaller value money into circulation. For example, if you operate machines that give paper cash in change (depending on country and regulatory environment).