Three decades after the days of the reddish-brown Canadian $2 banknote were numbered, a new symbol of Canadian currency entered circulation: . Today, that coin – affectionately known as the “toonie” – marks 30 years as a fixture in Canadian wallets and tills.
The decision to replace the $2 bill with a coin came in , as the federal government sought cost savings, mirroring a move made earlier with the $1 note in . According to Alexandre Reeves, principal of public affairs at the Royal Canadian Mint, the rationale was simple: coins last significantly longer than banknotes. “A coin can last at least 20 years,” Reeves explained. “Whereas a banknote might only last a year before needing replacement.”
The toonie, costing approximately 16 cents to produce at the time of its introduction, represented a significant investment in durability. The move was projected to save around $250 million over 20 years, according to government estimates.
Are Old $2 Bills Still Worth Anything?
Older denominations – $1, $2, $25, $500 and $1000 bills – which are no longer in production and have largely been removed from circulation, lost their legal tender status in . These notes can no longer be used for transactions.
However, they can still be redeemed at face value from the Bank of Canada. But Jacques Poitras, president of the Royal Canadian Numismatic Association, notes that some bills may be worth more than their face value. “A $2 bill can be worth more than its face value,” he said, particularly if they are older, in good condition, or possess rare characteristics.
An Iconic Polar Bear
Following public consultation, the Canadian government decided to feature a polar bear on the new coin. A contest was launched to name the bear, with Brent Townsend’s design ultimately selected. Townsend recalls being contacted to learn his artwork had been chosen, but was sworn to secrecy for six months.
Going from anonymity to notoriety was quite an adventure.
The design was officially unveiled at the Toronto Zoo on , months before the coin’s circulation. A polar bear mascot, later named Churchill in a public vote in (receiving 34% of the votes, with Wilbert and Plouf as runners-up), participated in the festivities.
Inspired by the “Big Nickel” in Sudbury, Ontario, the town of Campbellford, where Townsend resided at the time, erected a monument to the $2 coin in his honor. “When I was a little kid, I went to visit the ‘Big Nickel’ in Sudbury,” Townsend said. “When I learned that a giant coin was going to be erected in Campbellford, I couldn’t believe it. It’s a great source of pride.”
The toonie’s introduction wasn’t without its critics. Some Canadians questioned the coin’s durability, with early reports of the bi-metallic structure separating during circulation. However, the Royal Canadian Mint maintains that these instances were the result of “unconventional use.” Alexandre Reeves explained that the coin features a patented locking mechanism, capable of withstanding over 180 kilograms of pressure. He added that the coin underwent design changes in to enhance security features and reduce production costs.
What Does the Future Hold for Coins?
Canadians have increasingly shifted away from traditional cash payments towards electronic methods in recent years, leading to a growing number of businesses refusing to accept cash. Jacques Poitras, as a collector, acknowledges this shift. “There may be a slightly lower demand [for cash] because there are a lot of transactions that are done either with bank transfers or with those famous plastic cards, but the demand will always be there,” he believes.
He suggests that the number of coins minted in the coming decades will likely decrease. Will inflation ultimately lead to the demise of the 5-cent, 10-cent, or 25-cent pieces? “With the cost of living, maybe some coins will disappear,” Poitras speculated.
Despite these trends, both the Bank of Canada and the Royal Canadian Mint remain committed to maintaining cash as a payment method for the foreseeable future. “It’s important to remember that there are some people who rely heavily on cash,” Reeves said. “We make sure that all Canadians can participate in the economy.”
