Australia or the abolition of the largest denomination banknotes, represent the general trend of digital currency
Bitcoin digital currency and the world to develop the mainstream, and the cash economy tools trapped in another country, how can it make people not terrified.
Innovative technology brings bitcoin blockchain is perhaps for freedom and privacy brings a kind of unexpected consequences, because of the use of the financial sector are ready for a new economic system using digital cash substitution.
The “black economy” become a cash ban excuse
When the global cash prohibition movement spread on the occasion, Australia is ready to apply the stick. Australia’s largest bills of $100 “under review”, so as to help combat the “black economy”, namely the illegal economy. The term ‘black economy’ is also used by India’s prime minister Modi announced the ban in cash. This “black economy” account for about 1.5% of India’s GDP GDP, which is not taxed.
According to “the Australian News” reported that Australia seems to follow India and Venezuela’s footsteps, we may have to say goodbye to 100 Australian dollars.
The Australian Minister for revenue and financial services KellyO Dwyer “on Wednesday by ABC radio said,
“The key is to combat the black economy to close any potential tax loopholes.”
She warned that the current $100 banknotes in circulation is three times as much as $5.
The next few weeks, a “group of experts” will determine a $100 and a $50 bill fate may also save. It was the last month the United Bank of Switzerland (UBS) that can cancel the $100 in circulation, and lists the benefits of doing so: “tax increases, reduce crime, reduce welfare fraud.” UBS admits that would not harm the banker.
“From the bank perspective, if the $100 cash is in the bank, so it may make bank deposits increased, household savings will rise about 4 percentage points.”
However, the waste has been some resistance action notes look, some people think that this idea is simply waste money the government wants to pay more tax.
Australian Liberal Democratic Senator DavidLeyonhjelm will blame the economic problems on the government’s cash tax policy, he said,
“The only cash economy troubled people is the government and those who want to spend tax civil servants. If the government cut taxes on cash so naturally can reduce economic stimulus.
The development of the cash economy is to reflect the level of our tax. We believe that the solution is to reduce the tax, it will reduce the incentive of tax evasion.
The global cash movement appears to have some bans based on geographical restrictions. India does not use “the bills are not often used, so to be abolished” this excuse, because 500 and 1000 rupee notes is the most widely used. Spain and France recently has banned more than 1000 euros in cash. Venezuela has just announced the abolition of 100 per bill.
At the same time, many countries have already announced may adopt the national digital currency future, including Ukraine and China. Australia, Canada and other countries are also considering through bitcoin form to create their own digital currency countries.
Of course, the main difference between countries will be digital currency system is a closed loop network, unlike bitcoin used open source protocol.
The huge benefits of this national digital currency network is the so-called “capital struggle”, that is to prevent the transfer of funds to foreign citizens better investment options. Therefore, through all the money and citizen circle into the national new matrix, this ability to escape from the bear market will disappear.
This is no cash will lead to problems, why people to oppose the central bankers and the government of these measures. If all transactions have become digital, all cash have been banned. All transactions are required to be approved by the bank, it will take longer than cash transactions, so this is definitely not conducive to the protection of privacy. For each transaction of the government can be tracked according to the quantity, time and place.
If you continue this illegal cash trend, so it seems that the near future, we will use digital currency. The problem may be that: you will use the national version of bitcoin, or original bitcoin? We must choose wisely under a digital currency you.
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