Bundesbank Bank’s Thiele Against Electronic Money

The Bundesbank (German Central Bank) has come out to oppose eliminating cash. During the pre-euro years, the Bundesbank was providing us with inside info on the euro preparations because they were outright against it. Those who always hate central banks do not realize that they are not always what it seems. The Bundesbank is now clearly positioning itself against the drive to eliminate cash. This past week at an event in Berlin, Carl-Ludwig Thiele said that the attempt to abolish and criminalize cash is out of line with freedom. He said that citizens should continue to decide how and in what form they want to use their money.

Thiele’s main arguments were:

• Every citizen has the right, with his money, to proceed as he wants. If action is taken that impacts the rights to freedom of the citizen, it must be well-grounded. And so the question arises: how does a cash limit restrict crime in other countries? Thiele said he was not aware of any support where a cash limit, such as Italy or France, prevents crime. Crime should be correspondingly lower than in countries with no upper limit on cash, but that is simply not the case.
• The arguments that are made against cash and cash payments are unconvincing. He went on to argue that cash protects the privacy of the population. That benefit is not a reason to twist it into a benefit for criminals while ignoring the majority of honest citizens. The right to informational self-determination and respect for private life is a valuable asset that should not be watered down or abandoned. “Cash is coined liberty” – this modified Dostoevsky quote has not lost any of its validity.