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"Uncirculated" means brand-new and never used, so presumably you're referring to circulated bills that have become too worn or damaged to be used.

Some shredded bills are sold in packages as souvenirs and novelty items, but the vast majority of them have to be disposed of. They're usually incinerated or buried, but pollution concerns are prompting the Treasury to look for "cleaner" disposal methods.

The disposal problem is significant enough that it's become a factor in attempts to replace the US $1 bill with a coin, as has occurred in over four dozen other countries. Nearly half of all US banknotes are $1 bills and they have a very short lifespan (3 to 4 years) so replacing them with a coin that could last up to 50 years would put a major dent in disposal issues. However, given intense opposition from the company than has a monopoly on making paper for $1 bills, such an action will probably not happen in the near future.

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10y ago

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