hahah you have it backwards man! People don't need the government's currency. It is the government that profits from people using its currency. If you make it hard to transact in PKR people will switch to dollars, bitcoin, gold or other forms of money. They might even start issuing their own money.
I am not sure it's sarcasm or you really have no idea how things work in world. First of people do need state's currency as it's standard and acceptable across country, have state's backing and oversight on it, doesn't matter who is in government the state's instrument remains trustworthy over any alternative. Standard currency ease transactions and exchange for people, So state is actually facilitating people by providing instrument which is acceptable by everyone for goods and services.
It's foolish to think that people can switch to dollars, gold or any currency other than national currency because first of all availability of enough foreign currency to support economic activity (Whatever foreign currency is available it's in form of bigger denomination, If you want to check it than go to any exchange market of Pakistan, try to buy 1 dollar notes and coins, comeback and tell us how many you can find), same way we don't have enough gold to use it as alternative furthermore whom you will complain for counter fit dollars if you are using it to ditch state's currency, Mr. Trump? Who will issue and ensure the standard size of gold coins, purity of gold in today's world when even milk and eggs can be fake? Bitcoin is there for some time, tell me other than deep web, black market or trading bitcoin as kind of stock by some people what's share of bitcoins in regular trade? And how you will buy initial dollars, gold, bitcoins etc? Bitcoin is there because countries are overlooking it, otherwise it will not take even few days if the states of world decide to close it.
People issuing own currencies? really? I don't think even own kids will accept currency they issue as pocket money let alone others accepting it.
You are confusing power of state with government, governments can be formed by incapable and corrupt people looking for self interests hence weak but the state is quite powerful - look how despite all crying and winning people pay indirect taxes which state impose, that's power of state, we only need people with will at charge.
By all accounts demonetization was terrible for india so don't tell our people to do that same. It would be financial suicide!
Looks like you didn't understand what I wrote that's why trying to compare orange with banana.
Abrupt currency note changing exercise =/= Discontinuing higher denomination currency notes permanently. And we don't need to do it Modi way whose attention was to punch ATMs of opponents not eliminating cash otherwise he wouldn't have replaced 1000 note with 2000 as higher currency notes make cash hording and big cash transactions easier. We should first prepare grounds (i.e. 6 months - 1 year periods) - give tax rebates for 5 years to telecom companies who extend their 4g coverage across Pakistan within target period, ask them to issue data sims for payment terminals (No calling facility, just data that also restricted to payment gateways only). Allow import of payment terminals without zero tax and duties (even subsidize it if needed) for same period to make the devices affordable for small shops (better will be if banks provide these devices on minor rent, give incentives to bank for doing so), make regulation to make it obligation of consumer banks to open free of charge bank account with no minimum balance requirement, regulate payment terminal service charges. Digitalize the prize bonds, Print exchange notes of 5000, 10000, 50000, 1000000 which should be used by banks only for interbank settlements and state bank should keep track of movement, print enough smaller denomination notes and make them available to . In short first ensure that alternative is ready than announce discontinuation of 500, 1000, 5000 and ask people to deposit them into their bank accounts (open one if they haven't done it already) - max cash in smaller currency they should be able to get in exchange should be 50,000 to cover next couple of weeks expenses during transition period. It surely will be financial suicide for corrupts and criminals but not for countries, lots of things can be done to ensure minimal trouble in transition provided someone honestly want to do it.
the loot is incredible.
its a consumerist society. do the maths yourself man.
they should tax smartly but then again its more about turning black money white than actual Business of it.
its just alladeen news for everyone
Well, We are people who invented proverb of "100 Jootay, 100 Piaz khana" and that's what our society is in general. People will not be ready to pay 10% direct tax (which will be more for state in term of value as it will directly go into state's kitty) but will take bamboo of accumulated 30-35% indirect taxes where most of it go into pocket of crooks.
