No. I've heard this before. It's actually the old pre-1965 canadian flag which looks like this:
Because of the union jack in the square in the upper left corner, and the tiny size of the flag on the old 2 dollar bill, (or was it the 1 dollar bill?) it's easily mistaken for the US flag.
So in fact, we used to have the British flag on our old bills (sorta)
Edit: it still exists on the $50 bill apparently.
The flag is the Canadian Red Ensign, traitorously (as some would say) removed by the liberal government of Pearson and replaced with the bland maple leaf, to appease the (french) Quebecois.
Most of the provinces use either the red ensign, a modified blue ensign (Alberta), or general something with the Union Jack, Cross of St. George (English), or Cross of St. Andrew (Nova Scotia). Notable exceptions are Quebec (french) and Saskatchewan, as well as P.E.I. which is something to do with King Edward.
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