I am not sure why you would put the words "Legal Tender" on the bills. You are dancing a fine line with that. Initially I put on my bills "Not Considered Legal Tender".
Please look at this article:
https://en.wikipedia.org/wiki/Legal_tenderIf the government does not recognize it as legal tender, than it may be fraud to put that on the bills.
The denominations on the bills is also a little too high. I think that anything valued more than $50 would be too much to put on a denominated bill designed for circulation. It is too easy to create duplicate bills, steal private keys, etc. Unless the security can be super high and difficult to counterfeit, anything denominated and looking like currency is best left at small values ($1-$20 value in bitcoin).
That doesn't mean that a lot of bitcoins shouldn't be stored on a paper bill. But it shouldn't be something circulating. It would be something like a bitcoin cheque which can be used to give bitcoins to someone who doesn't have the means to handle them digitally at the time, or just store in a safe as a cold wallet. No one should trust a bill to a high degree that has moved around and comes from an uncertain source.
