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Used Cash Is Shredded:

Billions of paper money are shredded every year.

Every If a bill has holes totalling more than 19 square millimetres, about the size of an aspirin, it’s unfit. Dirty and worn-out bills are also sorted out with sensors.

about 15 % of all the $1 bills that pass through the doors of the Fed are shredded, while the number is in the 5 to 10 percent range for higher denominations like the $50, and while the Fed is shredding piles of unfit currency, the U.S. Bureau of Engraving and Printing is working constantly to replace those notes.

Why we shred 1 million in cash every hour