Fact-Check: Is a Major U.S. Dollar Bill Being Removed from Circulation? What Officials Say

Recent rumors have been circulating that the U.S. Treasury and the Federal Reserve plan to retire one of America’s most widely used banknotes, causing concern among cash users.

However, official sources confirm that all U.S. banknotes remain legal tender with no set date for withdrawal of any currency currently in circulation.

So, is America really saying goodbye to one of its most commonly used banknotes? Let’s separate fact from fiction and understand the future of U.S. paper money.

Are Any U.S. Banknotes Being Phased Out?

The short answer is no. Despite online speculation and misinformation, the Federal Reserve and the U.S. Treasury Department have not announced the retirement of any banknote.

All U.S. banknotes remain valid for transactions, including older designs.
Even outdated designs are still considered legal tender, meaning they can be used indefinitely.
No denomination, including the $1, $5, $10, $20, $50, or $100 bill, is being removed from circulation.

Official U.S. Currency Policy: treasury.gov

Why Are These Rumors Circulating?

There are several reasons why false information about the end of a U.S. banknote might be spreading:

1. The Decline of Cash Usage

• Digital payments are increasing, with more consumers using credit cards, debit cards, and mobile payment apps instead of cash.
• Some businesses have started moving toward cashless transactions, leading to speculation that paper money is being phased out.

More on Digital Payment Trends: federalreserve.gov

2. Confusion Over Redesigned Banknotes

• The U.S. government periodically updates the design of banknotes for security reasons, such as adding anti-counterfeiting features.
• Some people may mistake currency redesigns for a complete withdrawal of old notes.

Latest Banknote Redesigns: uscurrency.gov

3. Misinformation About High-Denomination Notes

• The U.S. previously discontinued higher-denomination bills like the $500, $1,000, $5,000, and $10,000 notes in 1969.
• Some social media posts mistakenly confuse past discontinuations with current policies.

History of U.S. Banknotes: moneyfactory.gov

Will Any U.S. Banknotes Be Discontinued in the Future?

While there are no official plans to retire any denominations, discussions about the future of cash continue.

• The $100 bill remains the most widely circulated note globally, despite speculation that digital payments could reduce demand.
• The U.S. $1 bill has been debated due to its production cost, but no formal plans exist to remove it.
• No official statements suggest the phasing out of any commonly used banknotes.

Can Stores Refuse Certain Banknotes?

Although all U.S. currency is legal tender, individual businesses can set their own payment policies.

• A business is not required by law to accept cash.
• Some stores may refuse certain bills, like $50 or $100 notes, to avoid counterfeiting risks.
• However, the government does not force businesses to stop accepting any banknote.

Are Other Countries Retiring Banknotes?

Several countries have started phasing out or limiting high-denomination notes due to concerns over fraud, counterfeiting, and money laundering.

• The European Central Bank (ECB) stopped printing €500 notes in 2019.
• India demonetized its 500- and 1,000-rupee notes in 2016 to combat tax evasion.
• Canada discontinued its $1,000 bill in 2000 to deter illegal activities.

However, the U.S. has not announced similar plans for any of its active banknotes.

International Currency Policies: imf.org

What Should You Do With Older U.S. Banknotes?

Since all U.S. paper money remains valid, there is no need to exchange or replace your cash.

• Older designs of banknotes remain usable for purchases.
• You can exchange worn or damaged bills at banks or through the Bureau of Engraving and Printing.
• If a bill is too damaged to use, you can submit a claim for a replacement.

Final Verdict: No U.S. Banknote Is Being Phased Out

Despite viral rumors suggesting that a widely used American banknote is being retired, the U.S. government has confirmed that all bills remain in circulation.

• No banknotes are being withdrawn, and all paper money issued since 1914 remains legal tender.
• While cash usage is declining, no policies are in place to eliminate any banknote from circulation.
• If you have U.S. currency, you can continue to use it without concern.

For the latest updates on U.S. banknotes and currency policies, visit federalreserve.gov or treasury.gov.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.