I don't recall that they've ever cancelled any government issued currency before. When I visited in 2015 it was several years after they'd switched new not production to the polymer bills, but I was still getting a few paper notes in change or exchange. When I visited in 1988, that's was after the introduction of $1 and $2 coins, although bills were still being printed and circulated.
It was odd because Canada was still printing CAD $1000 bills until 2000. I read somewhere that they were popular around the world with drug dealers because it was a lot more compact than the some common US $100 bill.
OK - I looked it up and Canada did remove the legal tender status from several bills, but they can always be exchanged at the Bank of Canada.
Not all bank notes are legal tender
As of January 1, 2021, the $1, $2, $25, $500 and $1,000 bills from every Bank of Canada series are no longer legal tender.
These bank notes have not been produced in decades, so the decision to remove them from circulation has had little impact on most of us.
- The $1 and the $2 notes stopped being issued in 1989 and 1996, respectively, and were replaced with coins.
- The $25 note was a commemorative note. Both it and the $500 note were discontinued shortly after they were issued in 1935.
- The $1,000 note stopped being issued in 2000.
Removing legal tender status from these bills means that they are no longer considered money. Essentially, you may no longer be able to spend them in a cash transaction. This does not mean that the notes are worthless. The Bank of Canada will continue to honour them at face value.