Ban the $100 bill?

New and more colorful $5 bills, intended to make counterfeiters’ lives more difficult, went into circulation earlier this month, joining the already spruced-up $10s, $20s, and $50s. The old $5 bills will continue to circulate until they wear out.

Coming next, at a date still to be determined, is the new $100 bill—unless, that is, those who would dump it altogether have their way. The anti-$100 bill argument, made in newspapers recently via this article, is that the $100 bill is handy for terrorists, drug kingpins, and other criminals who deal in large amounts of cash but plays little or no role in the lives of ordinary, law-abiding consumers.

Eliminating the $100 bill (the jargon is “demonetizing” it) would presumably mean that those of us with a C note we got from Grandma last birthday would be able to cash it in for some period of time before it became worthless. Criminal types with crates full of them, however, would have a lot of explaining to do.

What do you think? Should we keep the $100 bill or phase it out? Which would be better for consumers?  Please feel free to comment below.

Comments

[Ric Wade]

I have to wonder how much of carrying a $100 bill is purely ego?? Banks may have a fit ... but so what? The bills need is decreasing with the advent of the ATM card. If you cannot get a bank account, then quite possibly, the person does not belong here to begin with.

[Dan]

What a great idea. Maybe the greater amount of cash will give the druggies and terrorists bad backs and make it easier to catch the money going out of the US. I am 49 years old and have never had a hundred dollar bill, or a fifty. I am going to contact my Senators today. Thank you for the great idea. Dan

[Bob Doherty]

Good idea. Can't remember the last time I used a $50 bill either.

[Pavo]

I suppose those criminal types who are stockpiling stacks of $100 bills in safety deposit boxes would just start hording Euros instead. I read somewhere that is already happening as the dollar is weakening.

I think the real effect is that it will make more money for the credit card validation systems that are used to swipe credit/debit cards and charge the vendor for tranactions.

[Gene Shiau]

I don't remember the last time I saw a $50 bill. Let's get rid of that. Stop printing $100 bills is just non sequitur: foreign tourists ,especially from East Asian countries, are used to carrying large amount of cash -- there is too much risk of account information theft by using their ATM cards and credit cards. If we get rid of $100 bills, do we expect them to write traveller's checks everywhere they visit?

[Bucky]

With the current rate of inflation and cost of gas why would you eliminate the $100 bill? I prefer to pay with cash because it helps me understand how much money I'm spending. It's a little harder to spend cash when you see it disappearing. Using a card makes it too easy to spend more than you should. I think we should introduce a $75 bill.

[Charlene Edwards]

As a person who sometimes sells (and buys) items through places such as Craigslist, I am only willing to accept cash for the items I sell. It is too risky to accept checks and money orders from people one doesn't know. If I am selling (or buying) something for $400 or so, are we to be expected to pay in $10s and $20s? I don't know who all these people are who say they have never even used $50 and $100 bills. I always take the amount of cash I budget as 'spending money' out of my account each month. This makes it much easier to not go over my monthly budget. I prefer not using my ATM card for purchases. Just like a credit card, it makes it too easy to over-spend. Just because the money is in my account doesn't mean I want to spend it. (I usually withdraw $500 each month in cash, to be used for everything from groceries to entertainment. When it's gone, it's gone.)

[KimJSCP]

I personally use credit cards for every imaginable purchase (cash back!!) and only write 2 checks a year for taxes. But occasionally , if I am shopping somewhere that doesn't take credit cards and where online bill pay isn't appropriate (eg. buying a bicycle from a private seller), 100s can come in very handy.

That said, though - I don't really care what happens to the $100 bill. JUST GET RID OF THE PENNIES! They are such a waste of time, money and energy.

[Mike]

I very rarely use cash at all. Only at a bar, convenience store, or something like a street vender. With my credit or debit card I have a record of what I've spent and can keep track of it better. I log into my portfolio from Bank of America every day to check my finances. With cash, I have an entry for the withdrawal and then the money just dissapears after that.

[Chris]

I don't know why we let criminals and the small segment of society ruin it for the rest of us. There is a disturbing tendency to want to ban things because a few people abuse the system. We ban pseudoephedrine from OTC because a handful of people turn it into Meth. Nevermind that the majority of the people who use the medication legitimately now have to show our IDs or cannot get it at all if the pharmacy section is closed. This, by the way, has had no impact on the production or use of Meth. Now we are attempting to ban the $100 dollar bill? You can't tell me that this bill is not used - data on this is available. Do you expect this to have any impact on drug use/ selling? As if the lack of this one bill will stop criminals? There are many ways you can improve the situation with drugs and criminals, but banning $100 bill is not one of them. I know, lets ban all bills, little plastic baggies, and large trucks

[Sara]

Forget the $100 dollar bill. Get rid of coins first!!!! What a pain!!

[Tony]

Getting rid of the $100 bill is not going to stop drugs. People will sell, barter, or trade anything worth something to get drugs, including their own body. They will sell their own kids even. Are we going to get rid of kids too!

[Bill]

Not with 5%+ inflation rate!

[JLK]

What is the largest Euro note? Japanese note? It would be helpful to know the results in other countries, if this has been tried in similar economies to our own.

[David]

This is one the crazy ideas of the Bush reign. What will do after that, eliminate the fifty? Soon we can all carry a suitcase of one dollar bill; or we can convert to the Euro and dump the dollar altogether! The one hundred is sufficiently small to make transferring large amounts of dollars a true exercise.
Ban the dollar bill and require us all to use the dollar coin. That along with the printing of two dollar bills will make life for all easier, and it would save the treasury money.

[JOEY TAGLIARINO]

WHO NEEDS THEM? MOST RETAILERS REFUSE TO ACCEPT THEM ANYWAY...

[Coastman]

This is one of the silliest ideas I have ever heard. As one of the other posters noted, I use a debit card 99% of the time because of the record it gives me. However, I also usually carry several hundred dollars with me, particular when I travel for things like cab fare, porter tips, etc..

Our country needs to "grow up" and stop looking for a quick fix to all problems.

[Gail]

I use my debit or credit card almost exclusively. However, I do not think we should get rid of $100 bills. Just because I use plastic doesn't mean everyone wants to. I agree with one of the previous posters that a lot of retailers won't accept the big bills, but I think they should be forced to accept them.

[RonC]

I agree with KimJSCP and Sara. Get rid of the pennies. Forget the $100 bill.

[Lou Williams]

We could probably do without the $50 bill as well. Credit cards rule.
Ever try to break a C-Note at a local store? They think you're an idiot.

[Jason]

I often carry a $100 bill and a $50 bill when I travel. My smaller bills are exhausted with tips, cab fair, coffee and other fees by the time I arrive at my hotel. Getting cash while on the road can be arduous and result in outrageous fees. My employer requires me to use their credit card, but limits the things I can charge on it. Therefore if I want to join clients or coworkers at various bars or nightclubs, cash is mandatory. This is also necessary when splitting the check at restaurants. A few large bills allow me to carry sufficient cash to last the trip and cover emergencies.

[Paula Meyer]

Phase it out.

[Larry Schiro]

I really think getting rid of the $100 bill is a good idea. Every time I go to spend one, most businesses look at it suspiciously like I am some kind of counterfeiter. I don't like them period.

[ga]

Make totally new 100 bills and make it the old ones unusable in a years time.

[Joe]

Drug dealers will use cash regardless of the denomination and please take note, today's 100 is yesterdays 50.