According to the most loyal supporters, Bitcoin will eventually replace traditional Fiat. Tim Draper, crypto millionaire and venture capitalist believes that the use of familiar to us today currency would be a ridiculous anachronism in five years. But at the moment, at least, with the current price of Bitcoin, the first cryptocurrency has roughly the same market value as the largest banknote in circulation.
We are talking about the denomination currency of Brunei B$10,000, which is about 7 482 USD, about the same as Bitcoin today. Banknote with the image of Sultan Hasanal, Balcia was released in 2006. Such large values are not used in everyday life, but they can be useful in emergency situations or in wartime, but also in the illegal purposes. The value of the dollar Brunei legally corresponds to the currency of Singapore.
The tiny nation of Brunei — the complete opposite of the ideal of a decentralized cryptocurrency evangelists. The Sultan of Bolkiah, one of the richest men in the world, is one of the few remaining in the world of absolute monarchs. Thanks to huge oil and gas fields, which provide almost the entire economy, the gross domestic product per capita is among the highest in the world. In 2014, the country with 423 000 inhabitants, adopted strict Islamic Sharia law, which received serious criticism from international human rights groups.
Brunei bill of$10,000 is used in foreign exchange transactions in large amounts. Other bills for large denomination banknote was treated in 500 Latvian lats, which are gradually taken out of circulation, when the Baltic nation became the 13th member of the Eurozone. The Eurozone got rid of banknotes in € 500, which is nicknamed “bin Laden” due to its frequent use in the financing of terrorism.
The large denomination bills are often used in the money laundering, tax evasion and other criminal acts because they are easy to transport. A portfolio containing a 100-dollar banknotes with a total value of $ 1 million, will be filled to 70%. The same portfolio full of the biggest banknotes Singapore and Brunei will be filled only by 1.5%.
According to the U.S. Department of State, Bank notes of large denominations have a bad reputation, but in Brunei is a low threat of money laundering and financing of terrorism. And despite the risks associated with banknotes of high nominal value Switzerland,for example, continues to release its banknote of 1000 francs, which is becoming more popular.