"It's time to kill the $100 bill," says Lawrence Summers, former economic adviser to President Obama and ex-Treasury secretary. In the bold declaration, Summers cites a study published by researchers at Harvard's Mossavar Rahmani Center for Business and Government, that reportedly makes a case for stopping the issuance of high denomination notes like the 500 euro note or the $100 bill, or withdrawing them from circulation entirely.
He argues that the elimination of such high denomination notes would have little downside for legal commerce, but would have disatrous implications for those conspiring to commit tax fraud or other criminals breaking the law.
"In certain circles the 500 euro note is known as the 'Bin Laden' [which] confirms the arguments against it," Summers writes in the column, published by the Washington Post. "Illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds as would be the case if the $20 bill was the high denomination note."
Summers takes a step back and admits that while removing notes would be a step too far, a "moratorium on printing new high denomination notes would make the world a better place."
The appeal adds to the momentum the idea has picked up in recent days. Some actors in Europe, such as the European Commission and European Central Bank chief Mario Draghi, has shown interest in the removal of high denomination bills. Summers argues that if Europe moves forward with the plan, then others, such as Switzerland, may need to act in kind.
To understand just how much $100 bills dominate the U.S. market, all one has do is look at recent figures from the Federal Reserve. The bill is the second most common bill in circulation, second only to the $1 bill.
It amounts to 10.8 percent of the bills in circulation - 4.5 times as much as had been in circulation 20 years ago.
