Understanding the 500 Eiro Banknote and Its Removal

The 500 eiro banknote was a high-denomination note that was part of the euro currency. It was introduced in 2002 and was valid for circulation until 2013.

In 2013, the European Central Bank announced the removal of the 500 eiro banknote from circulation, citing concerns about money laundering and terrorism financing.

The decision to remove the 500 eiro banknote was made after a long process of evaluation and consultation with European governments and other stakeholders.

As a result of its removal, the 500 eiro banknote is no longer a valid means of payment in eurozone countries.

The 500 euro note has been a topic of interest for a while now, and its withdrawal from circulation is a significant move. The European Central Bank announced that it would end the issuance of the 500 euro note by the end of 2018.

The main reason for this decision is that the €500 note has been especially handy for moving money nefariously. It's a large denomination in a widely circulated and easily convertible currency, making it a preferred payment mechanism for those pursuing illicit activities.

The note's compact size and convenience for evading authorities have contributed to its popularity among criminals. According to a Harvard University study, the equivalent of $1 million in €500 notes weighs about five pounds and fits in a small bag.

Here are the three main problems associated with the €500 note:

The note's discontinuation is not a cause for concern, as it will remain legal tender forever. Notes that reach banks will be withdrawn from circulation, and money hidden "under the mattress" can be taken out and used or exchanged for other denominations at any time.

The 500 euro banknote has some amazing security features that make it difficult to counterfeit. The incomplete lines on the front and reverse sides add up to the value numeral 500 in mirror writing, which can be seen from the front side in normal writing.

You can check the banknote's authenticity by holding it against the light. The value numeral 500 in mirror writing in the watermark will be brighter than the surrounding paper. This effect can be seen from the front side laterally reversed.

The security thread is another key feature to look out for. It can be seen as a dark line in the middle third of the banknote, and it displays the text "500 EURO" in small letters and 500 in microletters, alternating in normal writing and mirror writing.

Here are some other security features to look for:

You can also use an ultraviolet lamp to check the banknote's authenticity. Under UV light, the fibers embedded in the paper will appear in red, blue, and green, while the flag of the European Union will look green with orange stars. The signature of the ECB President will turn green, and the large stars and small circles on the front will glow.

If you're not sure if a 500 euro note is real, look for the security thread in the middle third of the banknote, which displays "500 EURO" in small letters and "500" in microletters, alternating in normal writing and mirror writing.

The color of the "500" in the lower right corner on the reverse side changes from magenta to dark green depending on the viewing angle, which is not just an effect of brightness.

When you hold the banknote against the light, the value numeral 500 in mirror writing in the watermark is brighter than the surrounding paper, with no dark outline around the numeral.

The paper is dull, but the map, the bridge, and further elements glow green or yellow under the right light.

To be sure, check the paper's texture - the original note has a tactile print that can be felt, with one side being rougher and the other smoother.

Here are some key features to look out for:

The 500-euro banknote is a large denomination note, physically bigger than the other five euro bills. It's violet-colored and has a face value of 500 euros.

The 500-euro note accounts for just three percent of the total number of banknotes in circulation, but 28 percent of the total value, according to ECB statistics. This is a significant amount of money, but not a large number of notes.

Many people associate the 500-euro note with money laundering, the black market, and terrorist financing. A recent Harvard University study found that such notes are the preferred payment mechanism of those pursuing illicit activities, given the anonymity and lack of transaction record they offer.

The 500-euro note is so prized in underground finance that it can trade at more than its face value, and has become known in some circles as a "Bin Laden". This is due to its size and portability, making it easy to transport and move.

German Finance Minister Michel Sapin said the 500-euro note is "used more for hiding things than buying them". This highlights the concern that the note is being used for illicit activities rather than legitimate transactions.

The design of the 500 eiro banknote is quite striking. It features bridges and arches/doorways in modern architecture.

The banknote includes the denomination, which is a standard feature of all currency. The president of the European Central Bank's signature is also prominently displayed.

The European Union flag and the EU flag stars are visible on the banknote, along with a description of EU overseas territories.

The European Central Bank announced an end to the 500-euro bank note by the end of 2018, with the next highest denomination being the €200 note.

This move is aimed at hampering cash transactions by terrorists, drug dealers, and money launderers, who have found the €500 note to be a convenient and compact way to move large sums of money.

The €500 note is equivalent to $1 million, which weighs about five pounds and fits in a small bag, making it easy to hide and transport.

In contrast, the equivalent amount in $100 bills would weigh roughly 22 pounds and require an entire briefcase to carry.

The decision to phase out the €500 note was made due to its high value, which posed three problems: it was often used for criminal purposes, shops refused to accept it due to lack of change, and it became massively counterfeited.

Here's a comparison of the weight of different currencies:

Note that the €500 note will remain legal tender forever, and can be exchanged for other denominations at any time.

The design of banknotes is a crucial aspect that makes them easily recognizable. The Five hundred euro banknote features bridges and arches/doorways in modern architecture.

The design of the banknote includes the denomination, which is a clear indication of its value.

The European Central Bank's president signature is also a part of the design, adding a personal touch to the banknote.

The European Union flag and the EU flag stars are prominently displayed, symbolizing the banknote's connection to the European Union.

The description of EU overseas territories is another notable feature of the design, highlighting the banknote's global significance.

The initials of the ECB are displayed in different European languages, reflecting the banknote's multicultural nature.