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voodoo

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US $2 bills were frequently used at race tracks and in brothels during the late 19th century, when two dollars was the going rate in those pre-inflation days.

For a long time "proper" people tended to reject the bills because they were afraid others would think they had been engaging in those activities. In some of the more rural parts of the country that association morphed into the unfounded belief that the bills themselves could become tainted. The eventual "solution" was to tear off one or more corners of the bills so that the the "bad influences could leak out".

In reality, a paper banknote is no more "cursed" than a stamp, newspaper, or grocery bag, but incredibly the superstition persists even today in some limited parts of the US.

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Q: Why are the corners torn off the two dollar bill?
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