Although many people are not aware that the one thousand dollar bill is not in circulation anymore, the reason behind the phasing out of this denomination is the true mystery among other things. And the truth is that many people are also asking about the true reason why they became extinct.
It was stated that during the previous years, bigger denominations existed in the United States – $10,000, $5,000, $1,000, and $500. It was in the year 1864 that the government of the United States issued the one thousand dollar bill, but the printing of the same bill was stopped in the year 1934. Because there are still prints circulating in the whole of United States, the government announced the invalidity of the value of this denomination during the year 1969.
Many people did not know that the government ordered the stop of production of this denomination while the Second World War is happening. The government of the United States stated that the reason why such huge denomination in their currency existed is to make the money transfer easier. But because during this time, many technologies are already coming into play, the use of huge denominations is already not needed.
Even though the one thousand dollar bill is still found in circulation up to this day, the Federal Reserve Banks are making sure that when they receive one, it will be destroyed immediately. But even without the handling of the Federal Reserve Banks, it is already clear to people that the one thousand dollar bill is already not capable of buying them commodities in the market.