In the last few hours, several reports have been circulating according to which the European Central Bank has decided to withdraw the 500 euro banknotes. In reality, things are not exactly like this: the ECB, in fact, has not started any procedure to remove all €500 denominations from the Eurozone, nor has it announced its intention to do so – not in the short term, at least.
The misunderstanding probably arises from the fact that, within the EU, fewer €500 banknotes are actually circulating: this is because since 2019 all Eurosystem banks have stopped producing and distributing them, after the Governing Council of the ECB decided in 2016 not to include the €500 denomination in the second series of banknotes (the so-called “Europa” series). The decision was adopted “taking into account fears that this banknote could facilitate illicit activities”, such as money laundering or drug trafficking, given that the high value would allow large sums of money to be transported in a small space.
In any case, as also confirmed by the Bank of Italy, the 500 euro banknotes still in circulation will continue to be legal tender and therefore can be used normally as has already been the case since 2019: «The €500 banknotes, like all other euro banknotes, will always maintain their value and can be exchanged at the Central Banks of the Eurosystem without time limits».
The €500 banknote is not out of circulation: what to do with the ones in our possession
The decision to stop production of the €500 banknotes dates back to 4 May 2016, when the Governing Council of the ECB established that the €500 denomination would not be part of the new Europa series. As reported by the Bank of Italy, the central banks of the Eurosystem (i.e. of the countries that adopt the euro as their currency) continued to distribute 500 euro notes until 26 January 2019 (except for the German Central Bank and the Austrian Central Bank which, to ensure a smooth transition, continued the issue until 26 April 2019).
For the past 7 years, therefore, 500 euro banknotes have no longer been produced within the Eurozone: the ECB had justified the decision to exclude them from the new series “taking into account the fears that this banknote could facilitate illicit activities”. The 500 denomination, the highest among all the main currencies in the world, had in fact long been considered a particularly suitable tool for money laundering, drug trafficking and tax evasion, precisely because it allows large sums of money to be transported in a small space.
As highlighted during an interview also by the Prosecutor at the Court of Naples, Nicola Gratteri, 1 million euros in €500 banknotes weighs approximately 1.2 kg; on the contrary, 1 million dollars in cash can weigh up to 5 times more.
But, so, what to do if we still have 500 euro banknotes? These denominations, in reality, continue to be legal tender and can be used for payments and also as a store of value. This means that, at least for now, the €500 will retain its value and it will not be necessary to change it.
What will the new design of euro banknotes look like?
While the 500 euro denomination remains in circulation despite no longer being produced, the ECB is also carrying out a process of integral redesign of the euros, which will concern all the denominations currently in production – therefore those of 5, 10, 20 and 50 euros, but also 100 and 200 euros.
As confirmed by the ECB, after an initial phase of public consultation and theme selection, the Governing Council identified two possible themes for the new banknotes in November 2023: “European Culture” and “Rivers and Birds”. In the first case, the proposed motifs depict personalities from European cultural heritage – including Maria Callas (5 euros), Beethoven (10 euros), Marie Curie (20 euros), Cervantes (50 euros), Leonardo da Vinci (100 euros) and Bertha von Suttner (200 euros). In the second case, the proposed motifs mainly represent European natural landscapes with different species of birds, accompanied by headquarters of the EU institutions on the back.
The final decision on the new appearance of the banknotes is expected by the end of 2026, but several years will still pass before the new euros actually enter circulation.
