Gerald Darmanin believes digital transactions offer better traceability.
French Justice Minister Gerald Darmanin has suggested eliminating cash transactions, arguing that digital payments, including cryptocurrencies, are easier to track than physical money, which would aid authorities in fighting drug trafficking and other crimes.
Speaking to a Senate commission on Thursday, Darmanin stated that “a significant portion of daily petty crime and even organized criminal networks depend on cash,” and that “eliminating cash would prevent the establishment of drug dealing locations.”
Darmanin, who previously oversaw public finances, acknowledged that banning physical money wouldn’t eradicate the drug trade but asserted that “once money is traceable,” it becomes “more difficult” for both consumers and dealers to evade financial oversight.
The Justice Minister conceded that criminal organizations might switch to cryptocurrencies, but he contended that this would be an improvement because “crypto is often easier to trace” due to blockchain records and new EU regulations on transaction monitoring. Under the European Council rules, expected to take effect next year, crypto asset providers will be required to collect and share sender and recipient data with tax authorities, effectively ending anonymous crypto transfers within the bloc.
Restrictions on cash transactions have already been tightened in France and the EU in recent years. In France, any cash payment exceeding €1,000 to a professional entity is prohibited and subject to a fine of up to 5%, unless the person lacks a bank account or other digital payment methods. For transactions between private individuals, the limit is €1,500, unless the parties sign a with full names and contact details, according to from the Ministry of Economy and Finance.
At the EU level, the European Parliament passed a imposing a bloc-wide hard cap of €10,000 on cash transactions, starting in 2027. According to the European Commission, the aim is to close loopholes that allow criminal groups to move large sums anonymously.
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