How Many U.S. Dollar Bills Are There in Circulation?
When you think about it, the journey of each individual currency note is pretty incredible.
After being printed or minted, each bill is then passed between people and businesses to facilitate transactions. If it’s a $1 or $5 bill, it changes hands on average about 110 times per year – and if it’s a $20 bill, it’s more like 75. The interesting part is that almost every transaction is linked to the one before it, and the series of subsequent transactions for each bill creates a unique, broad story.
By the time a bill is retired, it would have facilitated many hundreds of transactions that enabled everything from the purchase of used cars to the shadier deals in underground markets. It’s a pretty interesting tale for such a little piece of paper.
Dollar Bills, in Aggregate
Today’s infographic from TitleMax gives a sense of what happens when all of those individual stories are combined together into one large one: the U.S. supply of currency notes, the shelf life of each type of bill, and how the whole system works as a whole.
In total, there is a total of about $1.5 trillion in U.S. physical currency in circulation, and roughly 80% of this value comes from the 11.5 billion $100 notes that are in circulation.
|Note||Number of bills in circulation|
|$1 bill||11.7 billion|
|$2 bill||1.2 billion|
|$5 bill||2.8 billion|
|$10 bill||1.9 billion|
|$20 bill||8.9 billion|
|$50 bill||1.7 billion|
|$100 bill||11.5 billion|
Of course, as we showed in All the World’s Money and Markets, this is just a fraction of the total money that exists as a whole, which includes digital deposits and liquidity added by central banks. That’s why, in the U.S. today, there’s about $14 trillion in total money supply (M2), of which physical currency makes up only about 11% of the total value.
Turnover Per Bill
Every year, the U.S. Bureau of Engraving and Printing is responsible for printing new dollars – and interestingly, 70% of these new bills are used to replace older notes going out of circulation.
That raises the question: how long does each bill last on average?
|Note||Average Life Span|
|$1 bill||5.8 years|
|$5 bill||5.5 years|
|$10 bill||4.5 years|
|$20 bill||7.9 years|
|$50 bill||8.5 years|
|$100 bill||15.0 years|
This means that printers are mostly turning out new batches of $1 and $20 bills, since there are more of those in circulation than most other bills.
At the same time, many new $100 notes are also being printed as well since they are the second most common bill. However, these last 2-3x as long as smaller denominations.
Visualizing the Rise of Digital Payment Adoption
By 2023, digital transaction values could reach $6.7T globally—catalyzed by digital commerce and mobile payments. COVID-19 is only accelerating this trend.
Digital Payments: The Evolution of Currency
Over the last decade, the digital payments landscape has undergone a structural shift.
Consumer behaviors are changing—moving towards contactless and cashless transactions. Meanwhile, as the magnitude of COVID-19 grows, these trends have only accelerated.
Today’s infographic navigates the digital payments ecosystem, exploring its history and innovative technologies, and how it continues to grow as a solution of choice for trillions of dollars of transactions each year.
Digital Payments Timeline
The origins of digital payments began over 25 years ago with then 21 year-old entrepreneur Dan Kohn in Nashua, New Hampshire, who sold a CD over the internet via credit card payment.
- 1994: First online purchase is made
A CD of Sting’s Ten Summoner’s Tales is sold for $12.48 on NetMarket.
- 1997: First mobile payments and first contactless payments
Coca-Cola installs two vending machines in Helsinki that accept payment by text message.
- 1999: Paypal launches electronic money transfer service
Early on, PayPal’s user base grew nearly 10% daily. Tesla CEO Elon Musk and venture capitalist Peter Thiel were among its co-founders.
- 2003: Alibaba launches Alipay in China
Today, the mobile payment platform has witnessed stunning growth — leveraging digital wallets accepted by merchants in over 50 countries and regions.
- 2007: M-PESA creates the first payments system for mobile phones
Kenya-based M-PESA launched its mobile banking and microfinancing service. Today, it has over 37 million active users on its platform across Africa.
- 2009: Bitcoin enables secure, untraceable payments
Satoshi Nakamoto develops the first decentralized payment network in the world.
- 2013: WeChat Pay is rolled into the popular messaging platform
By 2018, it surpasses 800 million monthly active users.
- 2014: Apple Pay launches
By 2023, over $2 trillion of mobile payment transactions could be authenticated by biometric technology.
As technological advances continue to unfold, advances in digital payment technologies are creating ripple effects globally.
Geographical Differences in Adoption
Unsurprisingly, the sheer volume of digital payments has continued to grow at a double-digit pace, now surpassing the $4.1 trillion mark.
How do cashless payments break down across different countries?
|Country||Daily Average Volume of Cashless Payments||Average Annual Cashless Payments Per Person|
Singapore has the highest number of cashless payments per individual, averaging 831 cashless payments annually. The country’s robust e-commerce market is supported by high-speed, reliable internet and a young, tech-savvy population.
With e-commerce spending accounting for about 6% of South Korea’s national GDP, it is another leading purveyor of a cashless society. Meanwhile, Sweden is projected to become a cashless nation as early as 2023.
Pivotal factors—including core infrastructure, consumer behavior and rising revenues—provide a glimpse into the rapidly changing payment horizon.
The Future of Digital Payments
As transactions rise, a number of other technological innovations could be instrumental to shaping the evolution of the digital payments industry:
- Messaging-app payments
Facebook Messenger, WhatsApp, and WeChat can leverage the reach of billions of users.
- Voice-activated commands
Paying for gas, groceries, or retail via voice could soar.
- Peer-to-peer (P2P) payments
Bank of America and Visa are investing heavily into P2P partnerships.
Over one million transactions take place daily on average.
- Biometric payments
Smartphone biometric security features could spur traction across digital payments.
- Facial recognition
May soon replace QR codes across retail, transit, and airports in China.
- Crypto wallet adoption
Blockchain wallet users are predicted to soar to 200 million by 2030.
- Hardware & in-store interfaces
Square, Stripe, and Clover are driving new mobile processing integrations.
The $4.1T digital payments ecosystem is facing a notable transition, catalyzed by a wave of global advancements and disruption. As the industry continues to widen its reach, consumers and investors alike can benefit from the shift towards a cashless economy.
The Racial Wealth Gap in America: Asset Types Held by Race
White families are more likely to hold assets of any type compared to other races. This chart highlights the substantial racial wealth gap.
The Racial Wealth Gap
People of color have faced economic inequality for generations, and the recent wave of Black Lives Matter protests has renewed discussions on these disparities.
Compared to White families, other races have lower levels of income and net worth. They are also less likely to hold assets of any type. In fact, 19% of Black families have zero or negative net worth, while only 9% of White households have no wealth.
Today’s chart uses data from the U.S. Federal Reserve’s triennial Survey of Consumer Finances to highlight the racial wealth gap, and the proportion of households that own different kinds of assets by racial group.
Asset Types Held By Race
The financial profile between racial groups varies widely. Below is the percentage of U.S. families with each type of asset, according to the most recent survey from 2016.
|Family-owned Business Equity||15%||7%||6%||13%|
Vehicles are the most common asset across all racial groups, followed by a primary residence.
However, the level of equity—or home value less debts—families have in their houses differs by race. White families have equity of $215,800, whereas Black and Hispanic households have net housing wealth of $94,400 and $129,800 respectively.
In addition, White households are more likely to hold financial assets such as retirement accounts, family businesses, and stocks. These assets are instrumental in building wealth, and are prominent in the wealth composition of America’s richest families.
With fewer people of color holding these assets, they miss out on higher average returns than low-risk assets, as well as the power of compound interest. These portfolio differences are striking, but they are not the most important contributing factor in the racial wealth gap.
Demographic and Economic Variations
White households are also more likely to have demographic characteristics that are associated with wealth. According to the U.S. Federal Reserve, they are:
- Older, with more than half of households age 55 and up
- More highly educated, with 51% having some type of degree
- Less likely to have a single parent
- More likely to have received an inheritance
For example, 39% of White heads of households have a bachelor’s degree or higher, compared to 23% and 17% for Black and Hispanic household heads, respectively. However, education doesn’t fully explain the wealth inequities.
Enormous wealth disparities exist between families with the same education level. Even in cases where Black and Hispanic household heads have obtained a bachelor’s degree, their families’ median wealth of $68,000 and $78,000 respectively is still lower than the $98,000 median wealth for White families where the head has no bachelor’s degree.
After accounting for demographic factors, researchers still found there were considerable inequities. What, then, could be primarily responsible for the racial wealth gap?
The Income Gap
While previous research found that the wealth gap is “too big” to be explained by a difference in income, a recent study from the Federal Reserve Bank of Cleveland offers a new perspective. Focusing on White and Black U.S. households only, researchers analyzed the dynamics of wealth accumulation over time, as opposed to previous studies that considered short time periods.
They found that income inequality was the primary contributor to the racial wealth gap. According to the model, if Black and White households had earned the same labor income from 1962 onwards, the Black-to-White wealth ratio would have reached 0.9 by 2007.
Moving forward, the study concludes that policy changes will likely have a positive impact if they address issues contributing to income gaps. This includes reducing racial discrimination in the labor market, and creating programs, such as mentorships, that improve environments for specific racial subgroups.
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