Cash: Dragons vs Colao. Now comes the time for decisions

The new Draghi government has, within it, two figures who present almost opposite points of view on cash, and this situation must, sooner or later, reach a complex synthesis.

Draghi, if it's consistent with his story, shouldn't be an extreme fan of currency and electronic payments. We know how the ECB sent a letter to the Italian government to contest:

• failure to consult the Central Bank in imposing limits on cash;
• that the imposition of limits on counting undermines, at its foundations, the function of the euro as legal tender in the Euro Area. Banknotes alone are the true means of dissolving financial obligations in the euro area. Limiting its use limits the power of the ECB;
• there is also a social problem, linked to the fact that the poorest social groups are often excluded from the use of electronic money. With the increases in the obligation to use electronic money, already socially disadvantaged classes are disadvantaged.

Draghi, if consistent with the positions he also defended as president of the ECB, should be in favor of bringing the cash limit back to at least € 3,000, a limit considered acceptable by the ECB.

Then we have Colao presenting three huge biases:

• Coming from telecommunications, he sees only the digital, not the real, as a necessary element. Unfortunately, however, people live in reality;
• Coming from large companies, he tends not to see the evasions of multinationals, but to see only the problem of tracking the receipts of SMEs. Too bad that then up to the multinationals to pay very low tax burdens, like Amazon, which pays 7.3% on income, while cashing everything electronically;
• it is culturally of ZTL origin, that is piddina. He does not realize what life is for citizens who cannot afford a private jet, that is 99% of Italians. After all, he works in London.

So one of the contrasts that it will be interesting to see the evolution of this comparison. If Draghi wins, the limit should be increased, otherwise the current, irregular condition will continue.

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The Cash Article : Dragons vs.Colao. Now comes the moment of decisions comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/contante-draghi-vs-colao-ora-arriva-il-momento-delle-decisioni/ on Sun, 14 Feb 2021 17:48:53 +0000.