Due to the lack of demand for cash and the development of smartcards, the decision was taken five years ago to remove all euro banknotes and coins from the market. The major information campaigns and exposure in the media has given a great result, collecting more than 99,96% of the cash in circulation.
The euro was established as a unit of exchange in 1999 by 12 European Union member states and entered circulation in 2002. After only 38 years on the market you will in the future only be able to see them in a museum.
Argument: Bank of England cut the number of banknotes issued by 25 per cent between year 2001 and 2005. Due to the increase of e-commerce and the development of smartcards, the need for cash will continue to decrease, and finally be removed in year 2040.
Questions: What complications might occur if you remove banknotes and coins from a market? What necessary steps have to be taken to make it possible to take them out of circulation?