History

Federal Reserve notes are the only U.S. currency issued today. Federal Reserve notes were initially issued in denominations ranging from $5 to $10,000. The $100 note has been the largest denomination printed since 1946. In 1969, all notes greater than $100 were retired because of declining demand.

The design of Federal Reserve notes has changed some over the years. In 1929, the size of the notes was reduced. It also was decided that all currency would have a portrait on the front. Denominations under $100 would have buildings or monuments on the back. The inscription "In God We Trust" was added in 1955.

The most recent changes in our currency are designed to thwart counterfeiters. In 1996, to make our currency more secure against new reproduction techniques, the U.S. Department of the Treasury issued a new $100 note. The redesigned note's security features include a polymer thread embedded vertically in the bill, a watermark, concentric fine-line printing, color-shifting ink, and the most visible new feature, an enlarged off-center portrait. In 1997, the U.S. Treasury introduced the new $50 note which incorporates all of the $100 note's security features and a new low-vision feature--a larger denomination numeral on the back of the note. The redesigned $20 note was introduced in 1998. The $10 and $5 notes were redesigned in 2000.

In today's global economy, people and businesses rely on another form of currency--electronic money--for their transactions. Consumers can use ATM cards for shopping or withdrawing cash. They can bank from home via computer, pay bills electronically, and have paychecks automatically deposited electronically through direct deposit services. Federal Reserve Banks conduct financial transactions among themselves and between our nation's commercial banks using electronic funds transfer systems. It's all part of our currency's continuing evolution, making it possible for money to circulate efficiently through the economy.