Currently, there is no plan or legal means to demonetize bank notes in Canada. ‡ Withdrawn from circulation. Most currencies withdrawn are still legal tender. Effective January 1, 2021, the $1, $2, $25, $500 and $1,000 notes of each Bank of Canada series will no longer be legal tender.  Despite the introduction of new banknotes, old banknotes are still in use. Among the most significant recent developments in Canadian currency was the withdrawal of the $1, $2 and $1,000 notes in 1989, 1996 and 2000. The $1 and $2 denominations were replaced by coins colloquially referred to as « loonie » and « toonie », respectively, with the loonie simultaneously replacing the $1 note and the former passenger dollar coin, the latter retaining legal tender. In 2000, the $1,000 note was withdrawn at the request of the Attorney General of Canada and the Royal Canadian Mounted Police because it was allegedly used primarily for money laundering and organized crime. Today, money is not just banknotes or coins. There are many different forms, including credit cards, debit cards, cheques and contactless payments, which we make using mobile devices.
You can pay with any of these forms of money, even if they are not considered « legal tender ». In fact, everything can be used if buyers and sellers agree on the payment method. Amendments to the Bank of Canada Act and the Currency Act, passed by Parliament in 2018, gave the Canadian government the power to revoke the legal tender status of bank notes, something it could not do before. The power to withdraw the legal tender status of bank notes is one way to remove them from circulation and ensure that Canadians have access to the latest and safest notes. This also ensures that they are always easy to spend as the latest notes are more recognizable to traders. The $1 and $2 paper bills replaced by the loonie and the Toonie will be withdrawn as legal tender on New Year`s Day. 8 (1) Subject to this section, an offer to pay is legal tender when made The Bank of Canada indicates that legal tender will be removed from the $1.2, $25, $500 and $1,000 notes effective January 1, 2021. « Essentially, this means that Canadians may no longer be able to use them in transactions, » a Bank of Canada spokesperson said in a statement to CTV News Ottawa.
Starting at 1. As of January 2021, the $1, $2, $25, $500 and $1,000 notes of each Bank of Canada series will no longer be legal tender. 2.1. In the case of coins with a face value exceeding ten dollars, the offer of payment referred to in paragraph 1 shall not contain more than one coin and the offer shall be legal tender only for the value of a single coin of that value. The Government has indicated that there are currently no plans to abolish the legal tender status of other banknotes. Last week, the Bank of Canada (BoC) reminded Canadians that effective January 1, 2021, $1.2, $25,500 and $1,000 notes will be removed from the legal tender category. 2. The offer of payment in coins referred to in paragraph 1 shall be legal tender for a maximum of the following amounts for the following denominations: 12 All public accounts established or maintained in Canada shall be kept in the currency of Canada and any mention of money or monetary value in an indictment or other legal proceeding shall be made in the currency of Canada. What if you have old bills? The Bank of Canada says you can always keep them.
« It is important to remember that these notes will not lose their value as of January 1, 2021. The Bank of Canada will continue to take them at face value. Financial institutions may continue to accept these notes on behalf of their customers after their legal tender has been removed. Buy back tickets that are mutilated, contaminated or no longer legal tender. (b) the Crown of a province of Canada before it became part of Canada and the coin was legal tender in Canada immediately before October 15, 1952. The Minister of Finance is responsible for the Bank of Canada Act and the Currency Act, and the amendments to remove the legal tender status of bank notes were made by the Minister in consultation with the Bank of Canada and other authorities. The Bank fully supports the amendments. Some central banks demonetize banknotes after the exercise of legal tender, which means that they no longer retain their face value.