2018 budget to eliminate paper currency...

[ypdc_dennis]

The $1, $2, $25, $500 and $1000 paper bills are to be eventually downgraded from legal currency to pieces of pretty paper. It's been 18 years since the last $1000 bill was printed, but over 700,000 are still in circulation.

http://www.cbc.ca/news/politics/bank-notes-legal-tender-1000-bill-1.4554758

[momcqueen]

Implications for Cash on Pickup among other things. I’d never heard of a $25-bill until now.

[ypdc_dennis]

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@momcqueenwrote:
... I’d never heard of a $25-bill until now.

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Considering that a cheap one goes for about $8000 on eBay -- no great surprise. Print run in 1935 (for the 25th anniversary of the King) was 120,000 in English and 20,000 in French.

-..-

[momcqueen]

So what you’re saying is that if a seller had a $25-bill listed for Cash on Pickup that they should not accept eight $1000 bills as payment? Or they should....? Ha ha.

[cumos55]

A $1,000 bill has a value close to $3,000 as a collectable in 2018  and perhaps more depending on condition...

What is the value of a penny  today, and what will its value be 20, 50 or even 100 years from today?  How about those large pennies from the early 1900's.

What used to be paper money.... is "plastic" money today......

How about a 25 cent bill?

and then   those 8      $1,000 bills. would be acceptable as payment .....  because their collectable value would be close to $25,000

They got rid of $1,000 bills  because it was too easy to carry money across a border if it was these $1,000 bills.... Illegal drug traffic... illegally earned money....

Now think about the fact that  about 125 years years ago a worker earned about $1.00 a day... that was the  ... daily ..... salary

How many people remember buying a hamburger, fries and milk shake at McDonalds for less than $1.00 ?????... and that was acceptable value.....an acceptable price.

[cumos55]

Canada no longer has pennies...

Other countries have already stopped using those 5 cent coins

[momcqueen]

I’m not an economist and I don’t play one on TV but if I had a mattress stuffed with dollar bills because I didn’t trust the bank, I’d be upset that the government was arbitrarily de-valuing legal tender. I don’t mine bitcoins either, but measures like this strike me suspicious. Imagine if PayPal just decided to zero-out everyone’s balance on their own say-so. This is that to me. Like I said, I’m not an economist. I understand the financial logic behind not producing more pennies or thousand-dollar bills but to render them no longer legal tender? It’s money. Cash money. It’s supposed to be incorrigible. What am I misunderstanding about this move? There must be some misunderstanding on my part. Unless those de-valued bills suddenly increase in collector value which, in turn, makes the entire effort counterintuitive.

[ypdc_dennis]

The bills on the list will stop being legal currency for purchases, but they will still be redeemable with the Bank of Canada for their face value.  So, no loss of value, just loss of use.

[momcqueen]

Right, I thought I read that and I’m glad you confirmed my understanding of it. I’m exposing my ignorant underbelly here!

[cumos55]

A few years back, the Canada Revenue Agency said  that everyone will get their information on the internet....  No more paper to be sent, to be mailed, to tax payers.

and.....The next year this all changed....  Those that wanted a mailed paper copy of information, had the option of getting a paper copy.

The same will happen with money. There will always be people that will want actual money in a wallet.

Having everything on the internet  ... doing everything on the internet ... will be hacker-heaven.

[cumos55]

Money can never be worth less than face value.

A paper one dollar bill will always be worth $1.00.

An auctioneer cannot sell money for less than face value.

For every day transactions, a 25 cent cent piece, whether US or Canadian  is worth 25 cents.

However,   a complete roll of US 25 cent pieces is worth US dollar value.....at a Canadian bank