diff --git a/doc/release-notes.md b/doc/release-notes.md
--- a/doc/release-notes.md
+++ b/doc/release-notes.md
@@ -14,6 +14,7 @@
  - The `createrawtransaction` RPC will now accept an array or dictionary (kept for compatibility) for the `outputs` parameter. This means the order of transaction outputs can be specified by the client.
  - The new RPC `testmempoolaccept` can be used to test acceptance of a transaction to the mempool without adding it.
  - An `initialblockdownload` boolean has been added to the `getblockchaininfo` RPC to indicate whether the node is currently in IBD or not.
+ - The '-usehd' option has been removed. It is no longer possible to create a non HD wallet.
 
 Transaction index changes
 -------------------------
diff --git a/src/wallet/init.cpp b/src/wallet/init.cpp
--- a/src/wallet/init.cpp
+++ b/src/wallet/init.cpp
@@ -85,12 +85,6 @@
                              "transactions (default: %d)"),
                            DEFAULT_SPEND_ZEROCONF_CHANGE),
                  false, OptionsCategory::WALLET);
-    gArgs.AddArg(
-        "-usehd",
-        _("Use hierarchical deterministic key generation (HD) after BIP32. "
-          "Only has effect during wallet creation/first start") +
-            " " + strprintf(_("(default: %d)"), DEFAULT_USE_HD_WALLET),
-        false, OptionsCategory::WALLET);
     gArgs.AddArg("-upgradewallet",
                  _("Upgrade wallet to latest format on startup"), false,
                  OptionsCategory::WALLET);
diff --git a/src/wallet/wallet.h b/src/wallet/wallet.h
--- a/src/wallet/wallet.h
+++ b/src/wallet/wallet.h
@@ -91,6 +91,9 @@
     // Wallet with HD chain split (change outputs will use m/0'/1'/k)
     FEATURE_HD_SPLIT = 160300,
 
+    // Wallet without a default key written
+    FEATURE_NO_DEFAULT_KEY = 190700,
+
     // HD is optional, use FEATURE_COMPRPUBKEY as latest version
     FEATURE_LATEST = FEATURE_COMPRPUBKEY,
 };
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -4275,20 +4275,15 @@
     }
 
     if (fFirstRun) {
-        // Create new keyUser and set as default key.
-        if (gArgs.GetBoolArg("-usehd", DEFAULT_USE_HD_WALLET) &&
-            !walletInstance->IsHDEnabled()) {
-
-            // Ensure this wallet.dat can only be opened by clients supporting
-            // HD with chain split.
-            walletInstance->SetMinVersion(FEATURE_HD_SPLIT);
-
-            // Generate a new master key.
-            CPubKey masterPubKey = walletInstance->GenerateNewHDMasterKey();
-            if (!walletInstance->SetHDMasterKey(masterPubKey)) {
-                throw std::runtime_error(std::string(__func__) +
-                                         ": Storing master key failed");
-            }
+        // Ensure this wallet.dat can only be opened by clients supporting
+        // HD with chain split and expects no default key.
+        walletInstance->SetMinVersion(FEATURE_NO_DEFAULT_KEY);
+
+        // Generate a new master key.
+        CPubKey masterPubKey = walletInstance->GenerateNewHDMasterKey();
+        if (!walletInstance->SetHDMasterKey(masterPubKey)) {
+            throw std::runtime_error(std::string(__func__) +
+                                     ": Storing master key failed");
         }
 
         // Top up the keypool
@@ -4310,7 +4305,8 @@
 
         if (!walletInstance->IsHDEnabled() && useHD) {
             InitError(strprintf(_("Error loading %s: You can't enable HD on an "
-                                  "already existing non-HD wallet"),
+                                  "already existing non-HD wallet or create "
+                                  "new non-HD wallets."),
                                 walletFile));
             return nullptr;
         }
diff --git a/test/functional/wallet_basic.py b/test/functional/wallet_basic.py
--- a/test/functional/wallet_basic.py
+++ b/test/functional/wallet_basic.py
@@ -24,11 +24,9 @@
     def set_test_params(self):
         self.num_nodes = 4
         self.setup_clean_chain = True
-        self.extra_args = [
-            ['-usehd={:d}'.format(i % 2 == 0)] for i in range(4)]
 
     def setup_network(self):
-        self.add_nodes(4, self.extra_args)
+        self.add_nodes(4)
         self.start_node(0)
         self.start_node(1)
         self.start_node(2)
diff --git a/test/functional/wallet_hd.py b/test/functional/wallet_hd.py
--- a/test/functional/wallet_hd.py
+++ b/test/functional/wallet_hd.py
@@ -15,16 +15,9 @@
     def set_test_params(self):
         self.setup_clean_chain = True
         self.num_nodes = 2
-        self.extra_args = [['-usehd=0'], ['-usehd=1', '-keypool=0']]
+        self.extra_args = [[], ['-keypool=0']]
 
     def run_test(self):
-        # Make sure can't switch off usehd after wallet creation
-        self.stop_node(1)
-        self.assert_start_raises_init_error(
-            1, ['-usehd=0'], 'already existing HD wallet')
-        self.start_node(1)
-        connect_nodes_bi(self.nodes[0], self.nodes[1])
-
         # Make sure we use hd, keep masterkeyid
         masterkeyid = self.nodes[1].getwalletinfo()['hdmasterkeyid']
         assert_equal(len(masterkeyid), 40)
diff --git a/test/functional/wallet_keypool_topup.py b/test/functional/wallet_keypool_topup.py
--- a/test/functional/wallet_keypool_topup.py
+++ b/test/functional/wallet_keypool_topup.py
@@ -25,8 +25,7 @@
     def set_test_params(self):
         self.setup_clean_chain = True
         self.num_nodes = 2
-        self.extra_args = [['-usehd=0'],
-                           ['-usehd=1', '-keypool=100', '-keypoolmin=20']]
+        self.extra_args = [[], ['-keypool=100', '-keypoolmin=20']]
 
     def run_test(self):
         wallet_path = os.path.join(
diff --git a/test/lint/check-doc.py b/test/lint/check-doc.py
--- a/test/lint/check-doc.py
+++ b/test/lint/check-doc.py
@@ -41,6 +41,7 @@
                         '-rpcssl',
                         '-socks',
                         '-tor',
+                        '-usehd',
                         '-whitelistalwaysrelay'])
 
 # list false positive unknows arguments