The German Interior Minister Nancy Faeser has spoken in support of introducing a 10,000 euro cash limit, meaning no purchases over this amount can be made using cash.
In an interview Faeser stated that “a 30,000 euro cash purchase of jewellery or watches should soon be a thing of the past”. The reasoning behind the decision is that a cash cap “reduces the risk of criminal assets being concealed”, thereby “smashing criminal structures and consistently depriving them of criminal income”.
The policy has long been a demand of the German Tax Union, and according to Faeser it would make money laundering more difficult.
However, the Finance Minister of Bavaria, from the CSU party, has said that the project is disproportionate and isn’t suitable for fighting crime. He argued that forcing people to pay digitally won’t necessarily lead to a reduction in crime.
Meanwhile, in the Bundestag, the CDU seems divided on the subject, with one CDU politician Alexander Throm stating his support for a limit on cash payments for real estate purchases.
This story was first published by German newspaper Der Spiegel.
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