The U.S. Government has confirmed that, as of October 2024, several banknotes will no longer be accepted in stores, banks and ATMs if they are in bad condition. This has led to a number of rumors about the supposed elimination of this cash nomination. But how true is it?

In fact, the rumors are unfounded, as the $100 bills will not only remain in circulation, but will also receive a new design in 2034.

At the end of 2023, there were more $100 bills in circulation than $1 bills, according to the Federal Reserve Board. In total, there were 4.4 million more $100 bills than $1 bills. This means that more than 60% of the bills in circulation are of these two denominations. While the $1 bill has an average life of about 6.6 years, the $100 bill can last nearly 23 years.

The majority of these bills, about 80%, are found outside the United States. This is because, in many developing countries, holding U.S. dollars is a way to protect savings against the instability of their local currencies. However, their high denomination also facilitates the movement of large sums of money. This has led some to use them for illicit activities, such as drug trafficking and tax evasion.

Will the $100 bill disappear?

Rumors about the possible elimination of the $100 bill have arisen in the context of economic debates. Some economists, such as Ken Rogoff of Harvard University, have argued in favor of eliminating high-denomination bills. In their view, this could make it more difficult to move large sums of money, which would make crime more expensive.

In addition, their elimination could facilitate the use of negative interest rates, which would help revive the economy during financial crises, states the same specialist in a 2016 paper by Harvard’s Mossavar-Rahmani Center for Business and Government entitled “Making It Harder for the Bad Guys: The Case for Eliminating High-Denomination Notes,” written by Peter Sands.

Despite these views, however, there are no current plans to remove $100 or $50 bills from circulation. In fact, new designs for both bills are scheduled for the next few years. The $50 bill will get a new design in 2028, while the $100 bill will receive one in 2034. This demonstrates a continued commitment to these denominations.

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In conclusion, for now, the $100 bill will remain an integral part of the U.S. monetary system.

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