Editing Canadian dollar (section)

==Legal tender==
As of January 1, 2021, the $1, $2, $25, $500 and $1000 notes issued by the Bank of Canada are no longer legal tender.<ref>{{Cite web|title=About legal tender|url=https://www.bankofcanada.ca/banknotes/about-legal-tender/|access-date=August 19, 2021|website=www.bankofcanada.ca|language=en-US|archive-date=August 13, 2021|archive-url=https://web.archive.org/web/20210813193845/https://www.bankofcanada.ca/banknotes/about-legal-tender/|url-status=live}}</ref> All other Canadian dollar banknotes issued by the Bank of Canada remain as legal tender in Canada. However, commercial transactions may legally be settled in any manner agreed by the parties involved.

Legal tender of Canadian coinage is governed by the ''Currency Act'', which sets out limits of:<ref name="legaltender">{{cite web |url=http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=2329954&Language=e&Mode=1&File=25 |title=BILL C-41 – As passed by the House of Commons |publisher=Parliament of Canada |access-date=December 31, 2008 |archive-date=May 25, 2011 |archive-url=https://web.archive.org/web/20110525191303/http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=2329954&File=25&Language=e&Mode=1 |url-status=live }}</ref>
* $40 if the denomination is $2 or greater but does not exceed $10;
* $25 if the denomination is $1;
* $10 if the denomination is 10¢ or greater but less than $1;
* $5 if the denomination is 5¢;
* 25¢ if the denomination is 1¢.

Retailers in Canada may refuse bank notes without breaking the law. According to legal guidelines, the method of payment has to be mutually agreed upon by the parties involved with the transactions. For example, stores may refuse $100 banknotes if they feel that would put them at risk of being [[counterfeit]] victims; however, official policy suggests that the retailers should evaluate the impact of that approach. In the case that no mutually acceptable form of payment can be found for the tender, the parties involved should seek legal advice.<ref name="counterfeit">{{cite web |url=http://www.rcmp-grc.gc.ca/scams/counterfaq_e.htm |title=Currency Counterfeiting&nbsp;– FAQ |publisher=[[Royal Canadian Mounted Police]] |access-date=February 17, 2008 |archive-url=https://web.archive.org/web/20080215102641/http://www.rcmp-grc.gc.ca/scams/counterfaq_e.htm <!-- Bot retrieved archive --> |archive-date=February 15, 2008}}</ref>

Canadian dollars, especially coins, are accepted by some businesses in the northernmost cities of the United States and in many Canadian [[snowbird (people)|snowbird]] enclaves, just as U.S. dollars are accepted by some Canadian businesses.<ref>{{cite news |title=6 US Destinations That Will Accept Canadian Money Without Converting It |url=https://www.narcity.com/ca/on/toronto/travel/8-us-destinations-that-will-accept-canadian-money-without-converting-it |access-date=February 11, 2019 |publisher=NARCITY |date=March 14, 2016 |archive-date=February 12, 2019 |archive-url=https://web.archive.org/web/20190212070643/https://www.narcity.com/ca/on/toronto/travel/8-us-destinations-that-will-accept-canadian-money-without-converting-it |url-status=live }}</ref>

In 2012, [[Iceland]] considered adopting the Canadian dollar as a stable alternative to the [[Icelandic króna]].<ref>{{cite news |url=https://www.theglobeandmail.com/report-on-business/economy/iceland-eyes-loonie-canada-ready-to-talk/article2356634/ |title=Canadian envoy to Iceland sparks loonie controversy |first=Barrie |last=Mckenna |date=March 2, 2012 |newspaper=[[The Globe and Mail]] |access-date=March 4, 2012 |archive-url = https://web.archive.org/web/20120304152551/http://www.theglobeandmail.com/report-on-business/economy/iceland-eyes-loonie-canada-ready-to-talk/article2356634/ |archive-date = March 4, 2012 |url-status = dead}}</ref><ref>{{cite news |url=http://news.nationalpost.com/2012/05/15/iceland-canadian-loonie/ |title=If Iceland adopts the loonie, Greenland could soon follow: economist |first=Tristin |last=Hopper |date=May 15, 2012 |newspaper=[[The National Post]] |access-date=May 15, 2012}}</ref>
Canada was favoured due to its northern geography and similar resource-based economy, in addition to its relative economic stability.<ref>{{cite news |last=McKenna |first=Barrie |title=Canadian envoy to Iceland sparks loonie controversy |url=https://www.theglobeandmail.com/report-on-business/economy/iceland-eyes-loonie-canada-ready-to-talk/article2356634/ |access-date=March 3, 2012 |newspaper=The Globe and Mail |date=March 2, 2012 |archive-url=https://web.archive.org/web/20120302181026/http://www.theglobeandmail.com/report-on-business/economy/iceland-eyes-loonie-canada-ready-to-talk/article2356634/ |archive-date=March 2, 2012}}</ref><ref>{{cite web |title=Canada ready to discuss letting Iceland use its dollar |url=http://www.icenews.is/index.php/2012/03/02/canada-ready-to-discuss-letting-iceland-use-its-dollar/ |publisher=icenews.is |access-date=March 8, 2012 |archive-date=March 4, 2012 |archive-url=https://web.archive.org/web/20120304233431/http://www.icenews.is/index.php/2012/03/02/canada-ready-to-discuss-letting-iceland-use-its-dollar/ |url-status=live }}</ref> The Canadian ambassador to Iceland said that Iceland could adopt the currency; although Iceland ultimately decided not to move on with the proposal.<ref>{{cite news |url=https://www.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-a-poor-choice-for-iceland-central-bank-says/article4564361/ |title=Canadian dollar a 'poor choice' for Iceland, central bank says |first=Michael |last=Babad |date=September 24, 2012 |work=The Globe and Mail |access-date=November 24, 2012 |archive-date=January 5, 2013 |archive-url=https://web.archive.org/web/20130105181407/http://www.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-a-poor-choice-for-iceland-central-bank-says/article4564361/ |url-status=live }}</ref>