I just finished reading Kenneth Rogoff’s book, The Curse of Cash, when the rupee notes crisis erupted in India. Rogoff’s book is a defense of banning cash (paper/plastic and coins). On November 8, also the day of the U.S. election, Narendra Modi, Prime Minister of India, made a surprise announcement that had been kept secret, even from many in the Indian government, that 500 and 1000 rupee notes would no longer be legal tender within 24 hours. The Prime Minister cited the need to fight corruption as justification for the removal of the 500 and 1000 rupee notes. The removal of the 500 and 1000 rupee notes in effect demonetized 86% of India’s existing cash. Half of India’s citizens do not have a bank account and around 25% do not even have an ID card. 97% of the Indian economy is cash-based. This decision made 88% of all outstanding currency no longer usable. Prime Minister Modi attempted to downplay the shocking ban of existing 500 and 1000 rupee notes by tell...
from GoldBroker.com https://www.goldbroker.com/news/india-war-on-cash-and-gold-1047
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