2018 budget, the Government of Canada announced that it will ask for the power to be able to remove legal tender status from bank notes—something it cannot do now. If that power is approved by Parliament, the plan would be to remove that designation from certain bank notes that are no longer being produced—the $1, $2, $25, $500 and $1,000 notes—and they would be officially taken out of circulation. This initiative is supported by the Bank of Canada.Canada’s official notes and coins are called legal tender
Every bank note issued by the Bank of Canada since we opened our doors in 1935 is still redeemable at its face value. Technically, you can use a 1935 $25 bank note when you go shopping or pay a bill. The cashier might refuse it because it looks unfamiliar, but it is still worth $25. In fact, some bank notes, especially the rare ones, are worth more than the number on their face to collectors.

Bank notes issued by the Bank of Canada, together with coins issued by the Royal Canadian Mint, are what is known as “legal tender.” That’s a technical term meaning the Government of Canada has deemed them to be the official money we use in our country. In legal terms, it means “the money approved in a country for paying debts.”

Today, money is not just bank notes but takes many different forms: credit cards, debit cards, cheques, and contactless payments using mobile devices. You can pay with any of these forms of money, even though they are not considered “legal tender.” In fact, anything can be used if the buyer and seller agree on the form of payment. So “legal tender” has little impact on our everyday lives.Demanding lawful money just another form of money (My Central Bank has little impact on the face value of any Note redeemed for value changing the status not its function)
Bank notes will not lose their face value
In short, removing legal tender status means that some older bank notes would no longer have the official status of being approved for payments of debt. Essentially, that means you would no longer be able to spend that 1935 $25 bank note to buy items at a store. But these bank notes would not lose their face value. If you have one of them, you will still be able to take it to your financial institution or eventually send it to the Bank of Canada to redeem its value.

International experience
Many other countries have been doing this for years. More than 20 central banks around the world have the power to remove legal tender status from their notes, including the Bank of England, the Sveriges Riksbank (Sweden), the Swiss National Bank, the Reserve Bank of New Zealand and the European Central Bank.Current, high-quality and secure bank notes
Having the power to remove legal tender status from bank notes means that we can do a better job of keeping the notes in circulation current. Newer bank notes have better security features that make them difficult to counterfeit, and they are in better condition overall. Keeping notes current means they work more efficiently for all of us.

Officially taking the $1, $2, $25, $500 and $1,000 notes out of circulation will help achieve that goal. This decision will have little impact on most of us.

That’s because these bank notes have not been produced in decades. In fact, you almost never see them. Some people do not recognize them, which means they likely would not be accepted in transactions.

The $1 and the $2 notes stopped being issued in 1989 and 1996, respectively, and were replaced with coins.
The $25 note was a commemorative note. Both it and the $500 note were discontinued shortly after they were issued in 1935.
The $1,000 note stopped being issued in 2000.
By removing these old notes from circulation, we can ensure that our bank notes stay current, of high quality and secure. It also guarantees they are always easy to use. The Bank of Canada will continue to honour these bills and exchange them at face value but financial institutions will be forced to return them to the Bank every time one is brought in.

The Bank says that if you don’t want to redeem any of those bills, you can always decide to keep them as bookmarks.or debt free souvenirs .