With ones and fives, your going to have a lot of paper. Sooner or later, I think that the US will need a denomination greater than $100 in circulation. But I doubt it with the move towards all digital transactions. The Swiss have a Sw Franc 1000 note which is worth around $1100. The €500 is worth around $700.
Small bills will attract far less attention than 50s or 100s would in our estimation. We are well over a couple of thousand put back now and each pack of 100 fits in a standard number 10 envelope. I suppose eventually we will have to convert some to 20s, maybe when we hit 40 envelopes. It’ll start to crowd out the weapons in the safe. LOL
The point is we have done something when a whole lot of other folks have done nothing.
L
Higher denomination bills aren’t going to happen.
The reason is that the US has only two currency printing offices (Fort Worth and D.C.), and they work around the clock producing mostly $1 bills, and proportionately fewer higher denomination bills. Because other countries *have* to have dollars, most of our $100 bills are sent to them.
Yet with all that work, only about 4% of US daily retail is backed by paper. And this may create a “currency split” in which virtual money can be inflated or hyperinflated with the touch of a computer key, but not only *can’t* more paper money be printed, but neither can higher denomination bills, for the simple reason that nobody could make change for them.
And if there is a currency split, paper money is instantly *deflated* by 25 times. At the same time virtual money inflates. This can happen practically because only paper money and coin are legal tender, virtual money is not.
The government and banks have total control over virtual money and any instrument used to convey it, like credit and debit cards, bank checks, etc. And if paper money is in a bank, they can control that, too.
But “mattress money” is out of their control, and its value is dictated by sellers and buyers.