Cash Dinosaur: France Limits Cash Transactions to €1,000, Puts Restrictions on Gold; Bitcoin End Coming?

A few days ago I asked How Long Before Cash is Banned?

My question was in reference to reader CNA (Cards Not Appreciated) who commented ...

Hi Mish

I've been in Italy for a month. It's quite amazing how many places ask you to pay cash. Even at hotels, they would like you to pay your €1000+ bills in cash. And people 'wonder' why these countries always get into trouble.

CNA

Cash Dinosaur

My belief is that cash is going the way of the dinosaur. Just today we see another step in that direction.

France to Limit Cash Transactions

Via translation from El Economista, please consider France Limits Cash Payments to 1,000 Euros

The French Government will limit cash payments to 1,000 euros, compared to 3,000 euros today, a move that will come into force in September to combat terrorist financing and money laundering, in an announcement from Finance Minister Michel Sapin.

For non-residents (mainly tourists) the limit will drop from 15,000 to 10,000 euros.

Also, starting next year, banks will have to notify authorities of any income or withdrawals of more than 10,000 euros per month.

Restrictions apply to suitcases with money or goods of value like gold.

Yesterday, Today, Tomorrow

Yesterday the French cash limit was 3,000 euros. Today the cash limit is 1,000 euros. Tomorrow (not in the literal sense as timing is uncertain), cash transactions will be restricted to 100 euros, then banned altogether.

The same applies everywhere, including the US.

Candy

Want to buy a candy bar? The government will want to know where the purchase was made, how much you paid, and where you got the money to buy the candy bar.

Bitcoin End Coming?

Digital currencies will soon be mandatory.

I believe the only reason bitcoin has survived is the Fed wants to study digital currencies. When the Fed decides to go 100% digital (I have no timeframe in mind) bitcoin may very well go back to its initial roots: worthless.

The primary user of bitcoin right now is Chinese money laundering.

Disagree? Then please explain why 80% of Bitcoin Transaction Volume is Chinese.

How long can that really last?

Digital currencies are coming. Is bitcoin the answer?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com