Categories: FinanceNews

Spanish Government Wants To Curb Cash Usage To 1,000 Euros Per Transactions

It is quite apparent that the financial situation in Spain is evolving in the wrong direction. As of right now, there is a”ceiling” of 2,500 Euros per cash transaction. A similar ruling can be found across many different European countries, as governments want to counter money laundering efforts. In Spain, however, the limit of cash payments will be reduced to 1,000 Euros moving forward.

Enforcing Less Cash Usage In Spain

It is not uncommon for European countries to restrict the usage of money in large transactions. After all, people who have piles of cash to spend usually have acquired it through less than legal means. Since cash transfers leave no paper trail for both buyer and seller, it is not the preferred method of choice for governments and financial institutions throughout the world.

In Spain, things are being taken to the next level, although not in a positive manner. The government is working on a new decree that limits cash payments to 1,000 Euros. Even though this limit is more than sufficient for most everyday purchases, it makes buying household appliances or TVs with cash a lot more complicated. This decision will not sit well with consumers, that much is certain.

Restricting consumer access to their money and the manner in which they can spend it is never a way to make oneself more popular. Customers have been complaining about how they need to rely on banks more often than not, which creates a central point of failure in the financial ecosystem. If their bank suffers from issues, no payments can be completed, which is not an ideal situation for anyone.



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One could argue that Spain wants to combat fraud through the usage of “dirty money” during high-profile transactions. Granted, accepting dirty money could cause financial damage to the retailer in question, as this will effectively facilitate money laundering. But that doesn’t mean all consumers should be punished for the actions of a few people with illicit intentions.

Everyone in the world can see how banks and governments are continuously coming up with ways to curb the usage of cash within specific countries. Spain is just one of the regions where such a trend can be noted right now. More European countries will follow their lead by example, assuming this decree will be approved.

Consumers and retailers need to keep in mind that relying on banks for the financial system is not necessarily in their best interest. Giving up more control over one’s own money is never a positive development, and it only makes things worse for the rest of the world. The time is now to take control of one’s own finances, and banks will never offer that option.

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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