Fractional Currency?

I think its actually more likely that the 500 dollar bill will be reintroduced at somepoint, and the one dollar bills withdrawn from circulation. I also think a 5 dollar coin might someday see circulation again, if demand from the vending machine industry ever gets hold.

-XoG

When we get fractional currency, it will be half a mega$ or a quarter 0f a Tetra$.

Short and simple answer... overlap in Authorizations by Congress.

The only thing stopping the Federal Reserve from printing "fractional currency" right now is the law. Section 16 Paragraph 8 of the Federal Reserve Act stipulates the denominations they're allowed to issue: $1, $2, $5, $10, $20, $50, $100, $500, $1,000 $5,000 and $10,000.

So they can "go big", but they can't "go small" without getting the Act changed. "Fractional currency" would be lucrative for the Fed; if the Law hadn't prohibited them from issuing it, you'd already be using it now.

The Fed isn't the only note-issuing authority in your country. There's nothing to stop the US Treasury itself issuing "red-seal" fractionals. The current limit on red seal notes is $300 million, only a small proportion of which is currently being used, but $300 million doesn't go as far as it did back in the 1800's when that limit was set. As well, Congress could always create entirely new monetary laws to issue the notes under.

I didn't vote in the poll because, frankly, both coins and notes are "old technology". If there's going to be "a twist in our nations currency", you're far more likely to see something entirely new replace them both.

For many that will be unfortunate but it is the future. Our monitary system the way it is now is doomed. Europe is now trying to unify their monitary system with one type of money. That already disposed of many of their old coins and currency. Due to the constant intercountry trading, our monitary system must be abandoned too for something more universal. A one monitary system per country is just way to cumbersom and irritating and just eventually must be lost.
I suspect that in the near future all transactions will be electronic and no more coins or currency will be used anywhere. I used to laugh at my son when he mentioned how carrying money is a thing of the past. Now I too seldom use coins or currency. I pay for clothing, food, gas, all household bills such as gas, water, phone, etc with credit cards. Those too are paid from an electronic banking system. The only place I now use coins or currency is for tips at a restaurant and in some places that too is just added on to the bill.
Very soon some kid will say "Hey gramps, what was that stuff you old people used to carry called money?"

just carl: How sad that you do everything by credit card. I don't want to make assumptions but maybe you're forgetting the value of money itself - it's not purely numbers. It should represent something tangible. A unified monetary system for more than one country is scary. NO THANK YOU! There's already the US dollar for trading world-wide.
I don't see the big deal in carrying coins around, but then again I carry $2 coins and not rolls of quarters. I think it's plain brainwashing and customs. If you tried to take away the Canadian dollar, for example, we wouldn't get any international trade done because we aim for a weaker dollar. (Better bang for your "buck" here at Hudson's Bay.)