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It's worth noting that withdrawing certain banknotes is a classic move. Here's North Korea doing it in 2009: https://en.wikipedia.org/wiki/North_Korean_won#200

It's worth noting that withdrawing certain banknotes is a classic move. Here's North Korea doing it in 2009: https://en.wikipedia.org/wiki/North_Korean_won#2009_revaluation https://en.wikipedia.org/wiki/North_Korean_won#2009_revaluat... And the US did it in 1969: https://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency https://en.wikipedia.org/wiki/Large_denominations_of_United_... In both cases it appears that the main goal was tax revenue. In NK, against private traders, and in the US, against organized crime.

pravula 10y ago
And India doing it in 1978 (http://www.thehindubusinessline.com/money-and-banking/highvalue-notes-demonetisation-its-1978-redux/article9320703.ece http://www.thehindubusinessline.com/money-and-banking/highva...)
- aub3bhat 10y ago
  The difference is in the sheer volume of currency being taken out of / replaced from circulation almost 80% of the value. https://twitter.com/d_jaishankar/status/796012168873320448 https://twitter.com/d_jaishankar/status/796012168873320448
  - deleted 10y ago
    [deleted]
  - chaatman 10y ago
    >replaced from circulation almost 80% of the value. Not only replacing 80% of the value, but also added 220 Million bank accounts in a span of 15 months. 2/3 of the US population. https://www.reddit.com/r/worldnews/comments/5btovy/indian_rupee_500_and_1000_abolished_from_midnight/d9rc3y6/ https://www.reddit.com/r/worldnews/comments/5btovy/indian_ru...
jfoutz 10y ago
The US is kind of funny, we've (as far as i know) never withdrawn backing for a bill. If you have a silver certificate, you can spend it on a pack of gum. If you have a $1000 bill, you can deposit it in the bank. You might have some hassle getting the bank to believe you, of course, those bills are probably in pretty poor shape. But you should be able to exchange them for new currency. Although, it might be worth more to sell to a collector. there aren't that many around.
- herge 10y ago
  I think a private enterprises in the U.S. can refuse money, so your bank can refuse that 1000$ bill at their discretion (and pissing you off as a customer in the process). However, the government probably is required to take that money to pay nay taxes, although I do not know how you can pay any taxes to the federal U.S. by cash. Maybe a customs duty at a border crossing?

pravula 10y ago

And India doing it in 1978 (http://www.thehindubusinessline.com/money-and-banking/highvalue-notes-demonetisation-its-1978-redux/article9320703.ece http://www.thehindubusinessline.com/money-and-banking/highva...)

aub3bhat 10y ago
The difference is in the sheer volume of currency being taken out of / replaced from circulation almost 80% of the value. https://twitter.com/d_jaishankar/status/796012168873320448 https://twitter.com/d_jaishankar/status/796012168873320448
- deleted 10y ago
  [deleted]
- chaatman 10y ago
  >replaced from circulation almost 80% of the value. Not only replacing 80% of the value, but also added 220 Million bank accounts in a span of 15 months. 2/3 of the US population. https://www.reddit.com/r/worldnews/comments/5btovy/indian_rupee_500_and_1000_abolished_from_midnight/d9rc3y6/ https://www.reddit.com/r/worldnews/comments/5btovy/indian_ru...

jfoutz 10y ago

The US is kind of funny, we've (as far as i know) never withdrawn backing for a bill. If you have a silver certificate, you can spend it on a pack of gum. If you have a $1000 bill, you can deposit it in the bank. You might have some hassle getting the bank to believe you, of course, those bills are probably in pretty poor shape. But you should be able to exchange them for new currency. Although, it might be worth more to sell to a collector. there aren't that many around.

herge 10y ago
I think a private enterprises in the U.S. can refuse money, so your bank can refuse that 1000$ bill at their discretion (and pissing you off as a customer in the process). However, the government probably is required to take that money to pay nay taxes, although I do not know how you can pay any taxes to the federal U.S. by cash. Maybe a customs duty at a border crossing?