Why did Canada eliminate the 1 dollar bill?

Answer 1

Canada followed the trend of most other major countries that have replaced their low-denomination notes with coins. The main reasons were cost and efficiency.

Because prices have risen over time (see the Inflation category) more and more bills were needed to make even small purchases. That forced countries to print ever-increasing numbers of bills and those bills wore out more quickly due to greater use. While coins cost more to produce they have a much longer lifespan, are easier to count and process, and eliminate the need for things like bill-readers on vending machines and in subway and bus systems, so overall they have a much lower life-cycle cost.

The situation in the US is instructive. For various social and political reasons that country has refused to eliminate its $1 bill and has failed to promote the use of its $1 coins. Nearly half of all bills printed each year in the US are $1 notes; they wear out in less than 2 years on average, and the Treasury is finding it difficult to dispose of them in an environmentally safe way due to the inks used. Various organizations have estimated the cost savings of a $1 coin vs. $1 bill production at $500 million to $1 billion per year.