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Five hundred euro
(Eurozone and Institutions)
Value500 euro
Width160[1] mm
Height82[1] mm
Security featureshologram stripe, a EURion constellation, watermarks, microprinting, ultraviolet ink, raised printing, a security thread, matted surface, perforations, see through number, colour changing ink, barcodes and a serial number.[2]
Material usedCotton fibre[2]
Years of printing2002 – present[3]
Obverse
DesignWindow in Modern architecture[4]
DesignerRobert Kalina[5]
Design date3 December 1996[5]
Reverse
DesignBridge in Modern architecture and map of Europe.[4]
DesignerRobert Kalina[5]
Design date3 December 1996[5]

The five hundred euro note (€500) is the highest value euro banknote and has been used since the introduction of the euro (in its cash form) in 2002.[6] It is one of the highest value banknotes in the world, worth around 670 US$, 4,300 CNY, 51,300 JPY, 600 CHF or 430 GBP.[7] The note is used in the 22 countries which have it as their sole currency (with 20 legally adopting it); with a population of about 332 million.[8]

It is the largest note measuring 160x82mm and has a purple colour scheme.[4] The five hundred euro banknotes depict bridges and arches/doorways in Modern architecture (around the 20th century).[4]

The five hundred euro note contains several complex security features such as watermarks, invisible ink, holograms and microprinting that document its authenticity. In October 2011, there were approximately 594,833,600 five hundred euro banknotes in circulation around the Eurozone.

History

Main article: History of the euro

Legally, both the European Central Bank and the NCBs of the eurozone countries' National Central Banks have received the right to issue the 7 different euro notes from the ECB. In practice, the NCBs of the zone issue and withdraw euro notes. The European Central Bank does not own an office containing cash and has not been involved in any operations involving cash.[3]

Before the introduction

The euro was founded at the date of 1 January 1999, after which it began being the currency of over 300 million Europeans.[3] For the first three years of its existence it was a currency which was used only in accounting. Euro banknotes and coins were introduced on 1 January 2002, and on that day it replaced the former cash of the eurozone 12, as it was then, national currencies like the Irish Pound and the Austrian schilling.[3]

After the introduction

The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. The official date on which the national currencies ceased to be legal tender varied from member state to member state.[3] The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from ten years to forever.[3][9]

Changes

There has so far only been one series of euro notes, however a new series similar to the current one is to be issued from 2011.[4] The initial issue of notes bears the signature of the first president of the European Central Bank, Wim Duisenberg, who was replaced on 1 November 2003 by Jean-Claude Trichet, whose signature appears on subsequent issues.[4]

Design

In October 2011, there were approximately 594,833,600 €500 banknotes in circulation.

The five hundred euro note measures at 160 millimetres (6.3 in) × 82 millimetres (3.2 in) with a purple colour scheme.[4] All bank notes depict bridges and arches/doorways in a different historical European style; the five hundred euro note shows Modern architecture (around the 20th century).[1] Although Robert Kalina's original designs were intended to show real monuments, for political reasons the bridge and art are merely hypothetical examples of the architectural era.[10]

Like all euro notes, it contains the denomination, the EU flag, the signature of the president of the ECB and the initials of said bank in different EU languages, a depiction of EU territories overseas, the stars from the EU flag and twelve security features as listed below.[4]

Security features

The five hundred euro note has the highest-quality security features of all notes due to its value. It is protected by a hologram stripe, a EURion constellation, watermarks, microprinting, ultraviolet ink, raised printing, a security thread, matted surface, perforations, see through number, colour changing ink, barcodes and a serial number.[2]

Crime

One quarter of all 500 euro notes are recorded in Spain since its launch in 2002

The value of the note is several times greater than that of the largest circulating notes of other major currencies, like the US$100 bill.[11] Thus a large monetary value can be concentrated into a small volume of notes. This facilitates crimes which deal in cash, including money laundering, drug dealing and tax evasion.[12] There have been calls to withdraw the note for this reason.[13][14] However, some of the replaced currencies had widely-used high-value notes, including 10,000 Belgian francs, 5000 Austrian schillings, 1000 Dutch guilders, and 1000 Deutsche Marks.[11]

Spain in particular now has a quarter of all these high-value bills within its borders.[13] This is far more than expected for an economy of its size and they are rarely seen in every-day commerce – they have been nicknamed "bin Ladens" by the populace (as everyone knows they are there and what they look like but they have never seen them).[15] British and Spanish police are using the bills to track money laundering.[13][14]

As of 20 April 2010, money exchange offices in the United Kingdom stopped selling €500 notes due to their use in money laundering.[16] The Serious Organised Crime Agency claimed that "90% of all €500 notes sold in the UK are in the hands of organised crime", revealed during an eight month analysis.[16] The €500 note is worth in the region of £430[7] depending on exchange rates (more than eight times the value of the Bank of England's largest publicly-circulated note), and had become the currency choice for gangs to hide their profits.[16]

The EU directive 2005/06/EC[17] on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing tries to prevent such crime by requiring banks, real estate agents and many more companies to investigate and report usage of cash in excess of €15,000.[17]

Circulation

As of October 2011, there were approximately 594,833,600 €500 banknotes in circulation around the Eurozone, therefore it is the second-least circulated banknote in the Eurozone.[18] That is approximately €297,416,801,500 worth of €500 banknotes.[18] The European Central Bank closely monitors the stock and circulation of euro notes and coins. It is the Eurosystem’s task to ensure an efficient and smooth supply of euro notes and to maintain their integrity.[18]

Environmental impact

As an environment-friendly institution, the European Central Bank tries very hard to make a shrewd use of natural resources, to keep the quality of the world and to save people's health in the produce and supplying of euro notes.[19]

Euro notes are safe to use: independent test results confirmed that euro notes fulfilled all European Union regulations including a large range of chemical substances in euro notes.[19] All substances in the notes have shown a concentration below any limit.[19]

Tracking

There are several communities of hobbyists, such as EuroBillTracker,[20] which track the euro notes as they pass through their hands, to record their numbers and monitor their travel.[20] Their aim is to record details about its spread and to generate statistics and rankings for various notes.[20] EuroBillTracker had registered over 96 million notes as of October 2011.[21]

References

  1. ^ a b c "ECB: Security Features". ECB. ECB.
  2. ^ a b c "ECB: Security Features". European Central Bank. ecb.int. 2002. Retrieved 22 October 2011.
  3. ^ a b c d e f "ECB: Introduction". ECB. ECB.
  4. ^ a b c d e f g h "ECB: Banknotes". European Central Bank. European Central Bank. 2002. Retrieved 13 October 2011.
  5. ^ a b c d "ECB: Banknotes design". ECB. ECB. February 1996. Retrieved 13 October 2011.
  6. ^ Young, Alf (1 January 2002). "Witnessing a milestone in European history". The Herald. Back Issue. Retrieved 23 October 2011.
  7. ^ a b Approximate conversion rates (rounded down) from xe.com in September 2011
  8. ^
  9. ^ "Bank of Italy – Exchange of lira notes and coins". Banc d'Italia. Banc d'Italia. 13 April 2011. Retrieved 14 October 2011.
  10. ^ "Money talks – the new Euro cash". BBC News. BBC News. December 1996. Retrieved 13 October 2011.
  11. ^ a b "500 euro". BBC News. Retrieved 25 April 2011.
  12. ^ Euro Trash Slate
  13. ^ a b c McLean, Renwick (19 April 2006). "One in four €500 bills are in Spain. Why? Crime might be the answer". New York Times. Retrieved 2 May 2011.
  14. ^ a b The raid in Spain Digital money forum
  15. ^ Casciani, Dominic (13 May 2010). "500 euro note – why criminals love it so". BBC News.
  16. ^ a b c Casciani, Dominic (13 May 2010). "Organised crime fears cause ban on 500 euro sales". BBC News. Retrieved 25 October 2011.
  17. ^ a b "Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing". Eur-lex.europa.eu. Retrieved 25 April 2011.
  18. ^ a b c "ECB: Circulation". European Central Bank. European Central Bank. August 2011. Retrieved 13 October 2011.
  19. ^ a b c "ECB: Environmental impact of euro banknotes". ECB. ecb.int. 20 December 2007. Retrieved 2 December 2011.
  20. ^ a b c "EuroBillTracker – About this site". Philippe Girolami, Anssi Johansson, Marko Schilde. EuroBillTracker. 1 January 2002. Retrieved 21 October 2011.
  21. ^ "EuroBillTracker – Statistics". Philippe Girolami, Anssi Johansson, Marko Schilde. EuroBillTracker. 1 January 2002. Retrieved 21 October 2011.

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