I'm not a big reader of "IMF" publications, but this article is
interesting.
JMR

http://www.imf.org/external/pubs/ft/fandd/2002/03/rogoff.htm

The Surprising Popularity of Paper Currency

A quarterly magazine of the IMF March 2002, Volume 39, Number 1
The Surprising Popularity of Paper Currency
Kenneth S. Rogoff

Will the global underground economy be the prime destination for
those large euro notes?

------------------------------------------------------------------------

The introduction of shiny new euro notes and coins at the beginning
of this year was indeed an exciting event. But one has to wonder.
Why hasn't paper and metal currency already gone the way of the
horse and buggy? With credit and debit cards, online banking, and
so on, why isn't the demand for currency steadily shrinking to zero?

Curiously, all prognostications about Internet money to the contrary,
there is not a shred of evidence that the public is about to give up
currency in the United States, Europe, or Japan. Indeed, evidence of
the reverse is stunning.
.....


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