Now is the time to use any old paper Canadian bills before the end of the year.
Last week, the Bank of Canada (BoC) reminded Canadians that as of January 1, 2021, $1, $2, $25, $500, and $1,000 banknotes would have their legal tender status removed.
In accordance with amendments to the Bank of Canada Act and the Currency Act approved by Parliament in 2018, the federal government recently decided to remove legal tender status from some older bank notes as of the new year.
“Most Canadians will not be affected because the bank notes targeted by this announcement have not been produced in decades and are rarely used in transactions,” the release said.
“Importantly, these banknotes will not lose their value. Canadians can redeem them at face value or decide to keep them. Those who wish to redeem their banknotes can do so most easily at their financial institution. They can also send banknotes directly to the Bank of Canada.”
The BoC said they support the initiative and, by doing so, ensure that the banknotes used by Canadians are current, in good condition, easy to use, and difficult to counterfeit.
In 1989, $1 banknotes were replaced with coins, followed by the $2 banknote removal in 1996.
And the $25 note was a commemorative note. Both it and the $500 note were discontinued shortly after they were issued in 1935.
As for the $1,000 note, it stopped being issued in 2000.
“Some rarer notes could be worth significantly more than face value to collectors,” the BoC said.
The government has indicated there are currently no plans to remove legal tender status from any other banknotes.