The federal government of Canada recently made a definite decision to remove the legal tender status for a few older banknotes with effect from January 1, 2021. This decision was in accordance with amendments made by the Parliament to the Bank of Canada Act and the Currency Act in 2018. Changes will affect the $1, $2, $25, $500, and $1000 notes making them inoperative.
Most of the targeted banknotes haven’t been produced in years and are rarely used. Canadians can either keep them or redeem them at face value in their financial institution or send them directly to the Bank of Canada. The government doesn’t plan to remove the legal tender status from any other banknotes.