Standing in line at my local corner store last month, I witnessed something that’s becoming increasingly rare.
An elderly gentleman ahead of me carefully extracted a crisp $100 bill from a well-worn leather wallet to pay for his groceries.
The young cashier held it up to the light, ran a counterfeit detection pen across Benjamin Franklin’s face, and hesitated before opening the register.
“Do you have anything smaller?” she asked. “We don’t keep much change for these.”
The man shook his head apologetically. “It’s all I got from the bank yesterday,” he explained, as the manager came over to approve the transaction.
This brief exchange highlights a growing reality in America – the once-common $100 bill is gradually becoming an outsider in our daily transactions, and there are compelling reasons to believe it might eventually disappear altogether from circulation.
The Curious Case of the $100 Bill: More Exist Than Ever, Yet Rarely Seen
Here’s a surprising fact I discovered while researching this topic: there are more $100 bills in circulation today than any other denomination.
Over 16.4 billion of them exist worldwide, with a total value exceeding $1.64 trillion.
Yet despite this abundance, when was the last time you personally used one? For most Americans, the answer ranges from “months ago” to “I can’t remember.”
My neighbor Rick, a former bank manager, explained it perfectly over our fence line conversation last weekend. “It’s the paradox of the hundred,” he said, trimming his hedges between sentences.
“They’re everywhere and nowhere at the same time. Most are either hoarded overseas, sitting in safety deposit boxes, or moving through channels most everyday folks never see.”
This strange dichotomy – record numbers in existence yet increasingly absent from daily life – forms the backdrop to discussions about the bill’s potential disappearance.
Digital Payments: The Invisible Hand Pushing Cash Aside
Perhaps the most obvious factor driving the potential obsolescence of the $100 bill is our collective shift toward digital payment methods.
I’ve watched this transformation happen gradually in my own life – from writing checks for everything in the 1990s to now using my phone to pay for coffee with a quick tap.
Credit cards, debit cards, payment apps, and digital wallets have created an ecosystem where physical currency, especially large denominations, seems increasingly unnecessary and inconvenient.
Sarah Jenkins, who runs a small bakery in my neighborhood, told me her experience reflects this national trend. “Five years ago, maybe 70% of my transactions were cash,” she said, dusting flour from her hands as we spoke.
“Today it’s reversed. Maybe 20% cash at most, and I can go weeks without anyone handing me anything larger than a twenty.”
This shift accelerated dramatically during the COVID-19 pandemic, when contactless payments were encouraged for hygiene reasons. Many consumers who tried digital payments for the first time during this period never returned to their cash habits.
The Security Argument: Large Bills and Illicit Activities
Beyond convenience, there are more controversial reasons why governments might be happy to see high-denomination bills fade away.
Law enforcement agencies have long argued that $100 bills facilitate criminal activities, from drug trafficking to tax evasion.
Large bills make it easier to transport significant amounts of money discreetly – a million dollars in $100 bills weighs about 22 pounds and fits in a small backpack, while the same amount in $20 bills would weigh over 100 pounds and require multiple containers.
During a community safety seminar I attended last year, a retired federal agent shared an anecdote that stuck with me. “We once found three million dollars in hundreds stuffed inside the doors of a single car,” he recalled.
“Try doing that with twenties, and you’d need a truck. The hundred makes bulk cash smuggling feasible in ways smaller bills don’t.”
Several countries have already eliminated their highest-value notes for this reason. The European Central Bank stopped producing the €500 note (once nicknamed the “Bin Laden” for being widely known but rarely seen in public) in 2019.
Australia, Canada, and Sweden have similarly moved away from their highest denomination bills in recent years, citing concerns about criminal usage.
The Global Perspective: America’s Hundreds Abroad
One fascinating aspect of the $100 bill story is that most don’t even reside within American borders.
By some estimates, up to 80% of all $100 bills circulate overseas, where they serve as both a store of value and a de facto currency in countries with unstable financial systems.
During a business trip to Ukraine before the war, I witnessed this phenomenon firsthand. My hotel preferred payment in US dollars, specifically $100 bills, and I noticed locals exchanging them at markets with more confidence than they showed in the local currency.
Michael Casey, who spent decades working in international banking before retiring to my community, explained this dynamic during our local economic forum. “In places like Russia, parts of Africa, and throughout Latin America, clean, new hundreds are practically gold,” he said.
“They work when local banking doesn’t, they survive inflation, and they’re recognized universally. This overseas demand is a major reason they’re still printed in such quantities.”
This international usage creates a peculiar situation where the elimination of the $100 bill would have consequences far beyond America’s borders, potentially disrupting informal economies worldwide.
The Counterfeiting Challenge: Technology vs. Security Features
The cat-and-mouse game between counterfeiters and treasury departments represents another factor in the potential twilight of the $100 bill.
Despite sophisticated security features – the microprinting, color-shifting ink, 3D security ribbons, and watermarks – high-quality counterfeits continue to appear, forcing expensive redesigns every decade or so.
My cousin Teresa, who manages a retail chain, described the burden this places on businesses. “We’ve invested thousands in training and detection equipment specifically for hundreds,” she told me during our family reunion barbecue.
“And still, we get burned occasionally. It’s gotten to where many of our locations simply have a ‘no bills over $50’ policy. It’s not worth the risk.”
As digital technology advances, some experts believe we’re approaching a tipping point where the cost of securing physical currency against sophisticated counterfeiting might outweigh the benefits of keeping high-denomination bills in circulation.
The Federal Reserve’s Dilemma: Revenue vs. Responsibility
The Federal Reserve faces a complex calculation regarding the future of the $100 bill.
On one hand, large-denomination bills are extraordinarily profitable to produce. It costs approximately 14 cents to print a $100 bill, which then generates $99.86 in seigniorage revenue when issued.
This profit – the difference between the face value of currency and its production cost – represents billions in annual revenue.
During a monetary policy lecture I attended at our community college, the economist presenter highlighted this often-overlooked aspect. “The hundred is basically a license to print money in the most literal sense,” she explained.
“When foreign entities hold billions in US currency, they’re essentially providing interest-free loans to our government. It’s an incredible advantage of being the world’s reserve currency.”
However, the Fed also bears responsibility for maintaining the integrity and efficiency of the US monetary system. If $100 bills increasingly serve criminal enterprises rather than legitimate commerce, ethical questions arise about their continued production.
The Disappearance Scenario: How It Might Happen
If the $100 bill does begin to vanish, the process would likely be gradual rather than abrupt.
The most probable scenario would begin with reduced printing of new bills, followed by natural attrition as older bills wear out.
Eventually, an announcement of a phase-out period might occur, during which existing bills could be exchanged at banks for smaller denominations or electronic deposits.
I posed this question to Representative James Wilson at a town hall meeting last summer. “We’re nowhere near making that decision,” he assured the crowd.
“But if it ever happened, it would be transparent and provide ample time for everyone, especially those who rely on cash, to adjust. We’re talking years, not months.”
It’s worth noting that even discontinued currency remains legal tender in the United States forever – those $100 bills would still be honored, just gradually collected and removed from circulation.
The Cashless Society Question: Are We Ready?
The potential disappearance of the $100 bill feeds into broader conversations about whether America is moving toward a cashless society, and whether that’s desirable.
During a heated debate at our neighborhood association meeting about the local farmers market accepting digital payments, I observed a clear generational divide on this issue.
Younger residents saw cash as an anachronism, while older members expressed deep concerns about privacy, technology access, and autonomy.
Dorothy, an 83-year-old fixture in our community, made perhaps the most compelling point of the evening. “I lived through the Depression as a child,” she said, her voice commanding attention despite its softness.
“My father kept cash because banks failed. During blackouts and emergencies, cash still works. When you eliminate physical money, especially larger bills, you’re removing a safety net some of us still value.”
Her perspective highlights legitimate concerns about financial inclusion and resilience. Approximately 6% of American households remain unbanked, with no access to credit cards or digital payment systems.
For these Americans, predominantly lower-income and rural households, the elimination of larger bills could create additional hardships.
Privacy Concerns in a Digital Currency World
Another dimension of the $100 bill conversation involves privacy.
Cash transactions offer anonymity that digital payments cannot match. Every electronic transaction leaves a data trail that can be tracked, analyzed, and potentially monetized or monitored.
Over coffee last week, my friend Marcus, a cybersecurity specialist, articulated why this matters. “It’s not about having something to hide,” he explained, stirring his latte thoughtfully.
“It’s about maintaining the option of privacy as a fundamental right. Once cash disappears, every purchase becomes part of your permanent digital record.”
This concern crosses political boundaries, with both liberal privacy advocates and conservative government-skeptics finding common cause in defending the right to transact without surveillance.
The elimination of high-denomination bills would represent a significant step toward a world where anonymous transactions become increasingly difficult.
Learning from International Examples
Several countries further along the path toward cashless societies offer insights into what Americans might expect if $100 bills disappear.
Sweden provides perhaps the most dramatic example, with cash transactions representing less than 1% of the country’s GDP.
During a Scandinavian vacation three years ago, I experienced this firsthand when a Stockholm taxi driver looked genuinely puzzled at my attempt to pay with kronor. “Nobody uses these anymore,” he told me, pointing to his card reader and phone payment options.
South Korea has taken a different approach, actively phasing out their largest denomination (the 50,000 won note, worth about $37) to combat tax evasion, while simultaneously offering tax incentives for credit card usage.
These international experiments reveal both benefits – reduced crime, increased tax compliance, greater transaction efficiency – and challenges, particularly around inclusion and system resilience.
The Psychological Value of Cash
Perhaps the most overlooked aspect of this potential transition involves the psychological relationship many Americans have with physical currency.
Cash represents something tangible in an increasingly virtual world. You can hold it, count it, and physically exchange it with another person.
This tangibility provides a sense of security and control that digital alternatives, despite their conveniences, struggle to replicate.
My uncle Robert, who survived multiple economic downturns as a small business owner, expressed this sentiment poignantly during a family dinner discussion. “Numbers on a screen can vanish in a computer glitch,” he said.
“But that hundred in your safe is still a hundred, no matter what happens to the power grid or the internet.”
This psychological comfort, while difficult to quantify, represents a significant barrier to the elimination of large-denomination bills.
The Road Ahead: What Americans Can Expect
As we look toward the future of the $100 bill, several developments seem likely in the coming years:
- Continued decline in everyday usage as digital payments become even more seamless
- Increased regulatory scrutiny of large cash transactions at banks and businesses
- Possible restrictions on the quantity of high-denomination bills that can be withdrawn or deposited without additional documentation
- Eventual public debate about the necessity of maintaining the denomination, particularly if smaller countries begin eliminating their largest bills
- Potential introduction of a digital dollar that could accelerate the transition away from physical currency
During a financial technology conference I attended in Chicago last fall, the keynote speaker summarized the situation with remarkable clarity. “The hundred isn’t disappearing tomorrow,” he said.
“But its role is transforming from practical currency to something between a financial instrument and a symbolic anchor of traditional money. The question isn’t if change is coming, but how we manage it thoughtfully.”
Preparing for a Changing Currency Landscape
For everyday Americans wondering how to navigate this evolving situation, several pragmatic steps make sense:
- Develop comfort with multiple payment methods, including at least one digital option
- Keep modest cash reserves in various denominations for emergencies
- Be increasingly cautious about accepting very large bills from unknown sources
- Stay informed about banking regulations regarding cash deposits and withdrawals
- Participate in local and national conversations about the future of physical currency
The cashier at my neighborhood grocery store, Melissa, perhaps summarized the practical reality best. “I used to see hundreds every day when I started this job fifteen years ago,” she told me while bagging my purchases.
“Now maybe one a week, and half the time we have to call a manager. I don’t know if they’re going away forever, but they’re definitely not part of everyday life anymore.”
The Symbolic End of an Era
Whether the $100 bill disappears completely or simply fades into irrelevance for daily transactions, its diminishing role symbolizes broader transitions in American economic life.
As we move further into the digital age, the balance between convenience and control, between efficiency and privacy, between globalization and local resilience, continues to evolve.
The fate of Benjamin Franklin’s portrait on our highest-circulation bill may ultimately depend less on government decisions than on millions of individual choices – each time we tap a phone instead of opening a wallet, each time a business posts a “No bills over $20” sign, each time a new payment technology gains adoption.
Standing in that corner store watching the elderly gentleman’s hundred-dollar bill undergo such scrutiny, I glimpsed both the past and future of American currency – a system in transition, with all the opportunities and challenges such transitions entail.
Whatever happens to the physical hundred, the values it represents – financial independence, personal autonomy, and economic opportunity – remain central to American identity, even as the forms through which we express them evolve.
The question isn’t simply whether a particular denomination will survive, but how we preserve these essential values in whatever monetary system emerges next.
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