I don't agree that it's dumb - at least not from the government's point of view. High denomination bank notes are very useful for tax evasion. What's in it for them?
>>High denomination bank notes are very useful for tax evasion
How so? And if this is an actual, real problem...then stop printing them? What's the point of making currency that normal citizens have issues using?
I just don't undestand it on some fundamental level. Where I'm from(Poland)_200PLN(about £40) notes are very common in circulation, and if you were to pay for a 5PLN loaf of bread with a 200PLN banknote I can guarantee literally no one would bat an eyelid. It's a common and completely normal banknote to use.
Yet in UK, where people make more money on average and also buy more expensive things, the £50 is some alien piece of paper that most Brits have never even seen. The only other place which treats its own currency with such disdain is Germany where I saw signs on petrol stations sayng they don't accept 500 Euro notes. Well if you don't, then why even have them? What's the point? The government should be going after all retailers who don't accept any official currency, because that seems like the very basis of working currency system.
I think you're conflating twoo things as well. Retailers don't like high denomination notes because they're more likely to be forgeries (getting change from a low value purchase with a high denomination note is a simple way to launder forged notes)
Governments don't like them because of tax evasion (though they'll call it "anti money laundering because not all upstanding citizens are entirely averse to a spot of cash-in-hand money laundering).
I presume there's just enough demand from business (where using high denomination notes for high value B2B transactions has very low transaction costs) that they still print them, but I would be surprised if they're still around in a decade.
The explanation for not accepting 500 eur notes when you generally sell stuff for <100 euros is that you're asserting that your cash drawers won't have 400+eur in cash so you can't ever give out change from a 500.
However, if you're making a jewelry purchase with multiple 50 quid notes, denying them would seem unreasonable.
How so? And if this is an actual, real problem...then stop printing them? What's the point of making currency that normal citizens have issues using?
I just don't undestand it on some fundamental level. Where I'm from(Poland)_200PLN(about £40) notes are very common in circulation, and if you were to pay for a 5PLN loaf of bread with a 200PLN banknote I can guarantee literally no one would bat an eyelid. It's a common and completely normal banknote to use.
Yet in UK, where people make more money on average and also buy more expensive things, the £50 is some alien piece of paper that most Brits have never even seen. The only other place which treats its own currency with such disdain is Germany where I saw signs on petrol stations sayng they don't accept 500 Euro notes. Well if you don't, then why even have them? What's the point? The government should be going after all retailers who don't accept any official currency, because that seems like the very basis of working currency system.