The U.S. Government has stated that starting in October 2024, stores, banks, and ATMs will no longer accept certain bills that are not in good shape. This has caused a lot of theories about how this cash nomination will be taken away. But is it really true?
Indeed, the reports are false; the $100 bills will not only stay in circulation, but they will also get a new look in 2034.
The Federal Reserve Board says that there were more $100 bills in circulation than $1 bills at the end of 2023. There were 4.4 million more $100 bills than $1 bills all together.
For more than 60% of bills in circulation, this means that these two amounts are used. It takes a $1 bill about 6.6 years to break, but a $100 bill can last almost 23 years.
In fact, about 80% of these bills are found outside of the United States. One reason for this is that having U.S. dollars is a way to protect savings in many developing countries from the unstable value of their own currencies.
But their big value also makes it easier to move large amounts of money. Because of this, some people use them for illegal things like moving drugs and not paying their taxes.
Will the $100 bill disappear?
There have been rumors in the setting of economic debates that the $100 bill might be done away with.
Some economists, like Harvard University’s Ken Rogoff, have made the case for getting rid of high-denomination coins. They think this could make it harder to move big amounts of money, which would raise the cost of crime.
A specialist wrote in 2016 for Harvard’s Mossavar-Rahmani Center for Business and Government a paper called āMaking It Harder for the Bad Guys: The Case for Eliminating High-Denomination Notes.ā
This paper says that getting rid of high-denomination notes could also make negative interest rates easier to use, which would help the economy recover from financial crises.
Even though these people think these things, there are no plans to take away $100 or $50 bills right now.
New styles are planned for both bills over the next few years. In 2028, the $50 bill will get a new look, and in 2034, the $100 bill will too. This shows that they are still committed to these groups.
To sum up, the $100 bill will stay an important part of the U.S. money system for the time being.
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