Would Nixing the United States $100 Bill Help Curb Mexico's Drug Problem? Sam Turner - Deseret News
go to original February 23, 2016

A new study suggests that there may be something the U.S. can do to suffocate the drug trade and, therefore, stem the tide of violence in Mexico - get rid of the $100 bill.

"Making it Harder for the Bad Guys: The Case for Eliminating High Denomination Notes," is the name of the study by Peter Sands of Harvard's Mossavar Rahmani Center for Business and Government.

Sands argues that electronic payment options have made large bills largely unnecessary and that large bills facilitate all kinds of criminal activity. Large bills make it easier for criminals to transport money, and make purchases undetected, says Sands.

This has obvious implications for the drug trade in Mexico. According to NPR, between $19 billion and $29 billion are estimated to cross the southern border each year in exchange for narcotics.



This cash is taken across the border, hidden cleverly in vehicles, boats, and even humans. Additionally, the money is mostly composed of $100 bills.

Sands notes that presently, cash seizure rates are quite low - only $550 million for the $19 billion to $29 billion that made it across - but eliminating the $100 bill might increase that rate.

Read the rest at Deseret News

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