• War On Cash Goes Global – India, Australia and Citibank

  • India shock cancellation of nation’s two highest-denomination notes

  • India effectively invalidates & removes 86% of cash from circulation

  • India sees “runs on banks” & severe financial difficulties

  • Citi to makes all Australian branches cashless

  • Australian pilot programme restricts 80% of payments on card

  • UBS proposes Australia eliminates $100 and $50 bills

  • What can we do about this?

  • Conclusion

Not Confidence Inspiring. Photographer: NOAH SEELUM/AFP/GETTY IMAGES via BLOOMBERG

By @Skoylesy . Editor @MarkTOByrne

In a world of ultra low and negative interest rates, bail-ins and increasing corporate and government surveillance, the war on cash will be damaging to savings and wealth protection, it will primarily benefit governments and banks.

These were the primary conclusions we came to in our recent research note on the ‘Cashless Society’. Within the article we touched on several points that we felt were of concern in the growing war on cash.

Going cashless meant greater risk to your wealth, control of your assets and even personal information. We cited a number of examples where the ‘war on cash’ and indeed the push for a cashless society is set to intensify and rapidly escalate.

However, we could not have known that within a month of that article being published Prime Minister Modhi of India shocked his country (and the rest of the world) by suddenly declaring “a surprise cancellation of the nation’s two highest-denomination notes, effectively invalidating 86 percent of total currency in circulation” as reported by Bloomberg.

This was, argued the government, a move to combat the ‘black money’ market, tax avoidance, fighting counterfeiting and terrorism financing. All noble aims that we would all support.

This was followed by an announcement from Citi Bank that it’s Australian branches will be going cashless (with near-immediate effect), telling customers that it ‘will no longer handle notes and coins in branches because of a lack of demand.’

Neither move has been done for what are seen as unorthodox reasons. Most are ‘on message’ in the ‘echo chamber’ that these latest moves towards a cashless society is good for economies and indeed citizens.

Tell that to people in Indian who could not buy food, water, medicine or medical services since the shock move. Tell that to small and medium size businesses who are struggling and some may go bankrupt due to the radical and some would say extreme move.

Indian elite sees cash as criminal

Modhi’s announcement to remove two large denomination notes meant about 86% of the cash in circulation would no longer be legal tender. Despite this the Indian government had no qualms about suddenly announcing and enacting this draconian measure, with no notice and giving the public and businesses in India no time to prepare.

The decision to act in this way was based on a widely peddled belief (across the globe) that if you are holding cash then you are potential involved in illicit activities, evading tax or worse you are a terrorist.

Therefore, why should you be given notice, or the right to hold your money and savings in your preferred medium.

As the Times reported

“Much of the wealth that India has accumulated since economic reforms began in the 1990s has never been taxed or accounted for, parked instead in