The $2 bill is an often overlooked piece of U.S. currency. Though the $2 bill remains in circulation, it is not commonly used in day-to-day transactions. This has led many people to wonder when $2 bills became rare in circulation. The history and usage of $2 bills provides insight into when they went from being a frequently used denomination to a relative rarity.
A Brief History of $2 Bills
The $2 bill has been in circulation since 1862, when the first $2 United States Note was issued as a way for the federal government to finance the Civil War. The portrait of Alexander Hamilton has appeared on the face of the $2 bill since the 1869 version. In 1928, the $2 United States Note was redesigned with a new portrait of Thomas Jefferson. This same portrait still appears on today’s $2 bills.
For many years, $2 bills were commonly circulated and used by the public. However, usage began declining in the middle of the 20th century. The key periods when the $2 bill started becoming less commonly used were:
The 1950s
In the 1950s, the $2 bill began declining in usage but was still fairly widely circulated. Approximately 89.2 million $2 bills were printed in 1957.
The 1960s
During this decade, the $2 bill supply continued to decrease. Only about 7.8 million $2 bills were printed in 1966. Usage dropped as the public preferred higher denominations like $5, $10, and $20 bills for everyday transactions.
Mid-1980s
In 1986, the U.S. Treasury made a final, large-scale effort to reintroduce and recirculate $2 bills by producing around 370 million of them. But the $2 bill did not regain popularity with the public.
1990s Onward
Since 1990, the annual production levels of $2 bills have been very low, averaging only a few million per year. Once $2 bills became uncommonly used in the 1960s, they have remained a collector’s item and novelty currency rather than one seen in everyday circulation.
When Did the $2 Bill Become Rare?
The $2 bill began transitioning from commonly used currency to relative rarity during the 1950s and 1960s. By the mid-1980s, the $2 bill was already considered unusual to see in circulation. The last meaningful attempt to recirculate $2 bills in 1986 was unsuccessful, cementing the $2 bill’s status as an uncommon novelty item from that point forward.
While $2 bills are still technically in circulation, they have been rare in public use for over 50 years now. Anyone who uses $2 bills today is likely doing so intentionally as something unique rather than relying on them for convenient spending power.
Why Did the $2 Bill Become So Uncommon?
There are a few key reasons why $2 bills faded in popularity during the 20th century after previously being a frequently used denomination:
- Higher denominations became more convenient – As inflation occurred throughout the 20th century, higher denominations like $5, $10, and $20 were sufficient for most everyday purchases. Carrying multiple $2 bills became inconvenient compared to a single higher denomination bill.
- Lack of public demand – The American public simply did not have a strong need or desire for using $2 bills once higher denominations were prevalent. By the 1960s, most people preferred using $1, $5, $10, and $20 bills instead.
- Lack of active promotion – The U.S. Treasury did little to promote $2 bills amid declining usage in the 1960s and beyond. Without active efforts to stimulate public interest, the $2 bill naturally faded from the public consciousness.
Essentially, both the government and the public lost interest in using $2 bills, allowing them to transition from everyday currency to collectible rarity over the course of a few decades.
How Many $2 Bills Are in Circulation Today?
The U.S. Treasury Department reported that as of Feb. 28, 2022 there were 1,547,821,852 $2 bills in circulation worldwide. However, far fewer than that amount are actually used in day-to-day transactions. A large portion of existing $2 bills are held by collectors and individuals as novelties.
It is difficult to precisely estimate how many $2 bills are in public circulation at any given time. Based on production figures over the past two decades, it can be reasonably estimated that only 50-75 million $2 bills are actively used for spending purposes in a typical year. So while over 1.5 billion $2 bills exist, only a very small percentage are routinely used for purchases.
Conclusion
In summary, $2 bills transitioned from commonly used currency to collectors’ items and novelty money over the 1950s, 1960s and 1980s due to both public and governmental disinterest. While still legal tender, they bear little relevance to today’s everyday spending habits and transactions. The $2 bill became rare in public use by the mid-1980s and there have not been any meaningful efforts to recirculate them since. While curiosities, $2 bills no longer hold much practical monetary value for most Americans in 2023 outside of collecting.