From paper to polymer banknotes
We have been issuing banknotes for over 300 years and make sure the banknotes we all use are of high quality. While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.
Paper money
The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation. The U.S. Bureau of Engraving and Printing creates U.S. paper currency.
Are we moving even faster into a cashless society? While you can still pay with notes and coins, the rise of cards and contactless payments makes it seem like a cashless society is not that far away. In fact, cash makes up just 16 per cent of payments, according to an analysis from the Reserve Bank of Australia (RBA).
As long as there is a demand for cash, that possibility will most likely remain there.
Inflation Is Eating Away at Your Funds
According to the Bureau of Labor Statistics, the average rate of inflation from April 2023 to April 2024 was 3.4%. If you've been keeping your money in a savings account with a lower yield than the rate of inflation, you should switch over to a higher-yield account.
While cash isn't disappearing entirely, data from Marqeta shows that both consumer attitudes and habits are shifting towards a less cash-dependent economy. According to Marqeta's 2024 State of Payments Report, nearly three-quarters of U.S. consumers aren't concerned about moving towards a cashless society.
Since law enforcement can track digital transactions and/or freeze bank accounts, many criminals—including drug cartels and terrorist organizations—operate in cash.
Most financial advisors recommend having cash set aside so that unexpected expenses don't blow your budget or cause you to rack up credit card debt.
Any bank will. If it's a business, like a restaurant, first look for signs that state something like “No bills over $50”. These are getting more and more common. If there's no sign, you should ask if they will break a $100.
The $100,000 bill is the highest denomination ever issued by the U.S. Federal Government. Printed in 1934, it was not intended for general use, but instead was used as an accounting device between branches of the Federal Reserve. It is illegal for a private individual to own this banknote.
Some countries aim to de-dollarize or reduce their dependency on the U.S. dollar, but it is still essential for global business and is a widely held reserve currency. There is no reason to expect the U.S. dollar to collapse in the near future.
The highest value is $4,500 or more for uncirculated notes from 1890, although most of those bills range from $550 to $2,500. The values are the same whether the bill has a red or brown seal. An original uncirculated $2 bill from 1862 ranges in value from $500 to more than $2,800.
The concept of a cashless society has been around for decades. But with 84% of payments in the US being made digitally in 2025 according to Clearly Payments, research suggests that the transition from physical currency could take place sooner than we once thought.
Perhaps the easiest way to think about the role of money is to consider what would change if we did not have it. If there were no money, we would be reduced to a barter economy. Every item someone wanted to purchase would have to be exchanged for something that person could provide.
Even the International Monetary Fund has recommended CBDCs as a replacement for cash. And proponents of CBDCs have often noted that cash needs to be removed to use a CBDC as a tool for monetary policy.
Paper money will not become obsolete any time soon.
$3,000 X 12 months = $36,000 per year. $36,000 / 6% dividend yield = $600,000. On the other hand, if you're more risk-averse and prefer a portfolio yielding 2%, you'd need to invest $1.8 million to reach the $3,000 per month target: $3,000 X 12 months = $36,000 per year.
Analysis from Barclays Investment Bank, meanwhile, predicts that the global transition from cash to digital payments would reach a tipping point moment in 2025, when absolute cash usage would decline from 41 per cent in 2019 to 20 per cent by 2030.
Cash use has been declining for years, but cash isn't close to going away. In 2022, there were a staggering 70 billion cash transactions, making it the third-most-common payment method.
The big four banks have reassured customers they will maintain in-branch cash services, following Macquarie Bank's unprecedented move to phase out cash and cheque services entirely. Commonwealth Bank, ANZ, NAB and Westpac all confirmed on Friday that there are no current plans to go cashless.
Is the US Going to Digital Dollar? As of June 2024, the US Federal Reserve has not decided to transition to a CBDC or supplement its existing monetary system with one. It is researching the effects a CBDC would have on the dollar, the US, and the global economy.
Money will be in digital format, just like credit cards, bank accounts and PayPal. But if you mean will the world remove currency altogether, then no.”
China's cashless evolution is a remarkable story, as the country transitioned in less than two decades from a cash-first society to one with an 86% mobile payments penetration rate.
Sweden: Sweden leads the world in cashlessness, transitioning away from banknotes. With just 32 ATMs per 100,000 people and over 98% of Swedes owning a debit or credit card, cash usage is dwindling.