Australia is putting a limit on cash transactions

Sam Matthews

Daily Digit is the story behind the numbers that make the world turn. Today we’re looking at an interesting move made by the Australian government. Starting in July 2019, cash transactions can be no greater than AU$10,000 — which is around US$7,500, depending on the day. The rule is, in part, a step toward a cashless society. However, the short-term goal is to crack down on money laundering and the “black economy.” Among other criminal enterprises, Australia has developed a sizable black market for tobacco products due to high taxes. Over the next four years the Australian government believes the elimination of large cash transactions could see an increase of AU$3.7 billion in tobacco taxes alone. Could the U.S. be next to introduce such a rule?