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The Central Bank has begun the gradual withdrawal of the First Family of Real banknotes, issued since 1994, through Normative Instruction No. 488. The notes of R$ 2, R$ 5, R$ 10, R$ 20, R$ 50, and R$ 100, in addition to the commemorative R$ 10 polymer note, are being withdrawn from circulation when they reach financial institutions. About 3% of the old notes were still in circulation when the measure was announced, and the advancement of Pix as the main means of payment accelerated the transition.
The Central Bank of Brazil is quietly retiring the notes that have accompanied the country for three decades. According to ndmais, Normative Instruction BCB No. 488, published in July 2024, determined that financial institutions do not return the First Family of Real banknotes to circulation when they receive them. In practice, this means that the old notes from R$ 2 to R$ 100 are still valid and can be used normally, but when they arrive at the bank, they are sent to the Central Bank and replaced with more modern versions. There is no deadline for mandatory exchange by the population.
The measure takes place in a scenario of transformation in the payment habits of Brazilians. Pix, created by the Central Bank itself, is already used by 76.4% of the population and appears as the most frequent means of payment for 46% of respondents in official surveys. Instant transfers, QR Codes, and banking apps have taken the place that cash used to occupy in daily life, especially in urban transactions and digital commerce. The withdrawal of old notes coincides with this advancement, although the Central Bank attributes the decision to the physical wear of the notes after more than 30 years of circulation.
Which notes the Central Bank is withdrawing
image: BC
The Central Bank’s Normative Instruction covers all the banknotes of the so-called First Family of the Real, a series launched in 1994 along with the Real Plan. The affected notes are those of R$ 2, R$ 5, R$ 10, R$ 20, R$ 50, and R$ 100, in addition to the commemorative R$ 10 polymer note, created in honor of the 500th anniversary of the Discovery of Brazil.
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image: Central Bank
These banknotes were produced between 1994 and 2010, when the Central Bank launched the Second Family of the Real with superior security features, sizes differentiated by value, and holographic elements that make counterfeiting difficult. According to a survey cited by UOL, about 3% of the First Family notes were still in circulation when the measure was announced. With 7.4 billion banknotes in circulation in total, this percentage still represents a significant volume.
How the collection works in practice
The process is discreet and does not require any action from citizens. The Central Bank has determined that when a bank receives a First Family banknote, it cannot return to circulation. The financial institution separates the note, stores it, and later sends it to the Central Bank, which replaces it with a Second Family banknote.
For consumers who have old notes at home, the Central Bank’s guidance is simple: continue using them normally. They can be handed over at any commercial establishment, deposited in ATMs, or used in payments without any restrictions. The difference is that once they enter the banking system, they do not return. This is what specialists call the “silent retirement” of old physical money.
Why the Central Bank is withdrawing the notes now
image: José Cruz/ Agência Brasil
The official reason presented by the Central Bank is the natural wear and tear of the banknotes after more than 30 years of use. Old notes arrive at banks torn, stained, crumpled, and with compromised security elements. Banknotes in poor condition cause problems in ATMs, counting machines, and cash transport processes, as well as making it difficult to identify counterfeit notes.
The Second Family of the Real, launched from 2010, introduced innovations such as different sizes for each denomination, making identification easier for the visually impaired, and more sophisticated holographic elements. The Central Bank wants these versions to become predominant in circulation. The standardization is not just aesthetic: it reduces operational costs for the financial system and increases security against counterfeiting.
The role of Pix in the transformation of money
Although the Central Bank insists that the withdrawal is due to wear and tear, the technological context is inescapable. Pix revolutionized the way Brazilians make payments since its launch in November 2020. In many commercial establishments, signs already indicate a preference for digital payments or inform the absence of change for cash, reflecting a rapidly advancing change in behavior.
The Central Bank itself created features that reduce the dependency on physical money, such as Pix Saque and Pix Troco, which allow consumers to obtain cash in stores using digital transfers. The withdrawal of old notes, the advancement of Pix, and the development of Drex, the Brazilian digital currency, are all part of the same financial modernization movement led by the Central Bank. But none of them signify the immediate end of paper money.
What to check before handing over your old notes
Before depositing that note kept in the drawer, it’s worth checking if it might have value for collectors. With the ongoing collection, the notes of the First Family of the Real are becoming increasingly rare, and specimens in “uncirculated” condition, that is, perfect as they came out of the printer, can be worth much more than their face value in the numismatic market.
For those who just want to confirm if their note is legitimate, the Central Bank lists the security features present in the notes of the First Family: watermark visible against the light, latent image when tilting the note, raised print perceptible to the touch, exclusive holographic strip on the R$ 20 note, and a coincident register that reveals the National Arms when observed against the light. Notes that present all these elements are legitimate and continue to have legal value.
Do you still have notes from the First Family of the Real at home? Do you think cash is on its way out or is it still essential for part of the population? Tell us in the comments.
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