500 euro note
Encyclopedia
The five hundred euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

note (€500) is the highest value euro banknote and has been used since the introduction of the euro (in its cash form) in 2002.
It is one of the highest value banknotes in the world, worth around 670 USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

, 4,300 CNY
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...

, 51,300 JPY
Japanese yen
The is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...

, 600 CHF or 430 GBP.
The note is used in the 22 countries which have it as their sole currency (with 20 legally adopting it); with a population of about 332 million.

It is the largest note measuring 160x82mm and has a purple colour scheme. The five hundred euro banknotes depict bridges and arches/doorways in Modern architecture
Modern architecture
Modern architecture is generally characterized by simplification of form and creation of ornament from the structure and theme of the building. It is a term applied to an overarching movement, with its exact definition and scope varying widely...

 (around the 20th century).

The five hundred euro note contains several complex security features such as watermarks, invisible ink, holograms and microprinting that document its authenticity. In September 2011, there were approximately 590,500,500 five hundred euro banknotes in circulation around the Eurozone 17.

History

Legally, both the European Central Bank and the NCBs of the eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...

 countries' National Central Banks have received the right to issue the 7 different euro notes from the ECB. In practice, the NCBs of the zone issue and withdraw euro notes. The European Central Bank does not own an office containing cash and has not been involved in any operations involving cash.

Before the introduction

The euro was founded at the date of 1 January 1999, after which it began being the currency of over 300 million Europeans. For the beginniner three years of its existence it was a currency which was used only in accountance. Euro banknotes and coins were introduced on 1 January 2002, and on that day it replaced the former cash of the eurozone 12, as it was then, national currencies like the Irish Pound
Irish pound
The Irish pound was the currency of Ireland until 2002. Its ISO 4217 code was IEP, and the usual notation was the prefix £...

 and the Austrian schilling
Austrian schilling
The schilling was the currency of Austria from 1924 to 1938 and from 1945 to 1999, and the circulating currency until 2002. The euro was introduced at a fixed parity of €1 = 13.7603 schilling to replace it...

.

After the introduction

The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. The official date on which the national currencies ceased to be legal tender varied from member state to member state. The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from ten years to forever.

Changes

There has so far only been one series of euro notes, however a new series similar to the current one is to be issued from 2011. The initial issue of notes bears the signature of the first president of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...

, Wim Duisenberg
Wim Duisenberg
Willem Frederik "Wim" Duisenberg was a Dutch politician of the Labour Party . He was the first President of the European Central Bank from 1 July 1998 until 31 October 2003. He was instrumental in the Introduction of the euro in the European Union in 2002. He was also credited for making numerous...

, who was replaced on 1 November 2003 by Jean-Claude Trichet
Jean-Claude Trichet
Jean-Claude Trichet is a French civil servant who was the president of the European Central Bank, a position he held from 2003 to 2011. He is also a member of the Board of Directors of the Bank for International Settlements...

, whose signature appears on subsequent issues.

Design

The five hundred euro note measures 160 millimetres (6.3 in) × 82 millimetres (3.2 in) and has a purple colour scheme. All bank notes depict bridges and arches or doorways in different historical European styles; the five hundred euro note shows modern architecture
Modern architecture
Modern architecture is generally characterized by simplification of form and creation of ornament from the structure and theme of the building. It is a term applied to an overarching movement, with its exact definition and scope varying widely...

 (between the 20th and 21st century). Although Robert Kalina
Robert Kalina
Robert Kalina from the National Bank of Austria created the T 382 design, which was the winning design of the 1996 competition for the art shown on the euro banknotes. Kalina's design was chosen by the EMI Council on 3 December 1996...

's original designs were intended to show real monuments, in the case of the 500 euro note the Pont de Normandie in northern France, for political reasons the bridge and art are merely hypothetical examples of the architectural era.

Like all euro notes, it contains the denomination, the EU flag, the signature of the president of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...

 (and the initials of said bank in different EU languages
Languages of the European Union
The languages of the European Union are languages used by people within the member states of the European Union. They include the twenty-three official languages of the European Union along with a range of others...

), a depiction of EU territories overseas, the stars from the EU flag and various security features as described below.

Security features

The five hundred euro note has the highest-quality security features of all notes due to its value. It is protected by a hologram stripe, reflective glossy stripe, a EURion constellation
EURion constellation
The EURion constellation is a pattern of symbols found on a number of banknote designs worldwide since about 1996. It is added to help software detect the presence of a banknote in a digital image. Such software can then block the user from reproducing banknotes to prevent counterfeiting using...

, watermark
Watermark
A watermark is a recognizable image or pattern in paper that appears as various shades of lightness/darkness when viewed by transmitted light , caused by thickness or density variations in the paper...

s, microprinting, ultraviolet ink, raised printing, a security thread, matted surface, perforations, see through number, colour changing ink, barcodes and a serial number.

Crime

The value of the note is several times greater than that of the largest circulating notes of other major currencies, like the US$100 bill
United States one hundred-dollar bill
The United States one hundred-dollar bill is a denomination of United States currency. U.S. statesman, inventor and diplomat Benjamin Franklin is currently featured on the obverse of the bill. On the reverse of the banknote is an image of Independence Hall. The time on the clock according to the...

. Thus a large monetary value can be concentrated into a small volume of notes. This facilitates crimes which deal in cash, including money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...

, drug dealing and tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...

. There have been calls to withdraw the note for this reason. However, some of the replaced currencies had widely-used high-value notes, including 10,000 Belgian franc
Belgian franc
The franc was the currency of Belgium until 2002 when the euro was introduced into circulation. It was subdivided into centimes , 100 centiem or Centime .-History:...

s, 5000 Austrian schilling
Austrian schilling
The schilling was the currency of Austria from 1924 to 1938 and from 1945 to 1999, and the circulating currency until 2002. The euro was introduced at a fixed parity of €1 = 13.7603 schilling to replace it...

s, 1000 Dutch guilder
Banknotes of the Dutch guilder
The chart below details the issues of Dutch banknotes from 1950 to 2002, as well as the subjects featured. Printed and issued dates are included where the issued dates are in parentheses. If in the same year, only one number is shown....

s, and 1000 Deutsche Marks.

Spain in particular now has a quarter of all these high-value bills within its borders. This is far more than expected for an economy of its size and they are rarely seen in every-day commerce – they have been nicknamed "bin Laden
Osama bin Laden
Osama bin Mohammed bin Awad bin Laden was the founder of the militant Islamist organization Al-Qaeda, the jihadist organization responsible for the September 11 attacks on the United States and numerous other mass-casualty attacks against civilian and military targets...

s" by the populace (as everyone knows they are there and what they look like but they have never seen them). The UK and Spanish police
Law enforcement in Spain
Law enforcement in Spain is carried out by numerous organizations, not all of which operate in the same areas.- National :*Guardia Civil - Civil Guard*Policía Nacional - National Police*Servicio de Vigilancia Aduanera - Customs Service- Regional :...

 are using the bills to track money laundering.

As of 20 April 2010, money exchange offices in the United Kingdom stopped selling €500 notes due to their use in money laundering. The Serious Organised Crime Agency
Serious Organised Crime Agency
The Serious Organised Crime Agency is a non-departmental public body of the Government of the United Kingdom under Home Office sponsorship...

 claimed that "90% of all €500 notes sold in the UK are in the hands of organised crime", revealed during an eight month analysis. The €500 note is worth in the region of £430 depending on exchange rates (more than eight times the value of the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...

's largest publicly-circulated note), and had become the currency choice for gangs to hide their profits.

The EU directive 2005/06/EC on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing tries to prevent such crime by requiring banks, real estate agents and many more companies to investigate and report usage of cash in excess of €15,000.

Circulation

As of August 2011, there are approximately 590,500,500 €500 banknotes in circulation around the Eurozone 17, therefore it is the second-least circulated banknote in the Eurozone. That is approximately €295,250,250,500 worth of €500 banknotes. The ECB closely monitors the stock and circulation of euro notes and coins. It is the Eurosystem’s task to ensure an efficient and smooth supply of euro notes and to maintain their integrity.

Tracking

There are several communities of hobbyists, such as EuroBillTracker
EuroBillTracker
EuroBillTracker is a website designed for tracking euro banknotes. It was inspired by the U.S. currency tracking website Where's George?.- Characteristics :...

, which track the euro notes as they pass through their hands, to record their numbers and monitor their travel. Their aim is to record is to ascertain details about its spread and to generate statistics and rankings for various notes. EuroBillTracker had registered over 96 million notes as of October 2011.
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