Europe prepares to scrap the €500 note, saying the large bills help fund terrorism - and most of the denominations are kept in Russia

Europe prepares to scrap the €500 note, saying the large bills help fund terrorism - and most of the denominations are kept in Russia
European bank bosses are planning to scrap the high-value 500 euro note
They say it has become the 'currency of choice' for criminals and terrorists
Financial officers also believe most of the notes are being kept in Russia
The note's purchasing power and convertibility makes it ideal for criminals
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Europe is likely to scrap the 500 euro note following a realisation the majority of those in circulation are being hoarded in Russia and have become the 'currency of choice' for criminals and terrorists.
Admitting the note is almost never used by normal people to 'get a bite to eat', European Central Bank bosses say it is likely to be scrapped.
The rarely-seen purple bill is one of the highest-value notes of any currency across the world and offers a rare concentration of purchasing power and global convertibility.

Mario Draghi, president of the European Central Bank, said law-abiding savers would not be penalised and could use the 200 euro note (£155) instead to hold their cash.
'People will continue saving the 200 euro notes. The 500 euro note is being viewed increasingly as an instrument for illegal activities. It has nothing to do with reducing cash.'


Rob Wainwright, director of Interpol, said the 500 euro note (£390) was the 'currency of choice' for criminals, while Mr Draghi added there was 'increasing conviction' the notes were used by fraudsters, FT reported.
The review comes as European lawmakers look at ways to cut off terrorist financing in the wake of the terror attacks in Paris that left 130 dead.
Michel Sapin, France's finance minister, said the denomination was 'more used to facilitate dishonest activities than by people like you and me to get a bite to eat'.
Although European finance officials complain most the notes actually reside in Russia, the amount of cash in the euro zone rose to more than 1 trillion euros last year, with almost 30 percent of it hoarded in 500 euro notes.
Germany was one of the early champions of the 500 euro note to match the value of its old 1,000 mark note and cater to Germans' traditional preference for cash over electronic money.
Cash hoarding has become more prominent throughout the years of crisis.
Capital controls prohibit large withdrawals in Greece, where savers have hoarded tens of billions, after big depositors lost money in the country's financial bailout.

The move comes less than a month after the head of the EU's anti-fraud body recommended the note is banned due to its use as a vehicle of big-money corruption.
Giovanni Kessler, head of the European Anti-Fraud Office, said: 'I wonder if there is still a need for high denomination bills, such as the 500 euro bill, especially bearing in mind that these can make the life of fraudsters much easier.'
Kessler is charged with investigating fraudulent use of EU funds and wrongdoing within EU institutions. In 2014, OLAF unveiled frauds for about 900 million euros.
Formerly a prosecutor against the Italian mafia, Kessler argued that smaller denominations and a more widespread use of electronic money would help investigators.
'Traceability is paramount in fighting corruption and fraud,' he warned.
Interestingly, Britain, outside the euro zone, has prohibited exchange offices from selling 500 euro notes since 2010 over crime fears. The biggest sterling note is 50 pounds, worth 65 euros.