Money is a means of exchange. It has to serve this purpose. All currency notes are guaranteed by the Govt of the land. But when the money loses its value , higher denomination notes need to be introduced , and lower denomination notes need to be abolished. This is called demonetisation. A currency has security features and utility features. If these things need to be improved , new notes can be introduced to replace old notes with less security features and less utility value. In India high denomination notes of Rs 1000 and Rs 500 were made illegal from the 8 th of November 2016. And new notes of Rs 2000 and Rs 500 were introduced. These new notes have additional security features and utility value to be used by blind people.. Demonetisation cannot abolish black money or terrorism. But it can create temporary problems for such people. But they will always find new methods to carry on. What our Govt has done is link all issues together. Issues like demonetisation , black money , terrorism , cashless/less cash/digital cash , and digitisation/computerisation have been linked together. In the long run , it will be good for the economy. But in the short run people will experience many problems. All countries do such things , thinking that it will benefit their economy and governance.
From the little I understand what you say is correct. Corrupt businessmen and government officials, black marketers, terrorists and other criminals rely on cash rather than bank accounts. By making certain banknotes no longer legal money the criminals have their ill-gotten gains made useless.
The currency itself is not affected, it's just that large bank notes and maybe certain types of coin are suddenly worthless, but bank deposits, credit cards, and so forth are not affected. The value of currency exchange rates are not affected in theory.
Basically the government is trying to take a shortcut to wiping out crime. Like most shortcuts they don't really work.
For exchange. When the money of a country is really high (like the euro) it's better to demonize it a bit because if not other country wouldn't do exchange with you it doesn't beneficiate than at all.
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A main one is typically to replace them with harder to forge currency.
But a secondary reason is to locate hidden stockpiles. So if you are a criminal for example, and are sitting on tons of actual cash, you're going to need to launder it for new money, which might be more challenging.
I'm not sure what you're talking about. I know that countries have to upgrade their currency to make them more counterfeit-proof.
LMFAO DEMONIZE!!! Put that devil in the money!
Demonetize* . Its not most. It's just India
I have no idea what you mean
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