diff --git a/src/wallet/wallet.h b/src/wallet/wallet.h
--- a/src/wallet/wallet.h
+++ b/src/wallet/wallet.h
@@ -58,8 +58,6 @@
 static const unsigned int MAX_FREE_TRANSACTION_CREATE_SIZE = 1000;
 static const bool DEFAULT_WALLETBROADCAST = true;
 static const bool DEFAULT_DISABLE_WALLET = false;
-//! if set, all keys will be derived by using BIP32
-static const bool DEFAULT_USE_HD_WALLET = true;
 
 static const int64_t TIMESTAMP_MIN = 0;
 
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -4284,6 +4284,12 @@
     if (fFirstRun) {
         // Ensure this wallet.dat can only be opened by clients supporting
         // HD with chain split and expects no default key.
+        if (!gArgs.GetBoolArg("-usehd", true)) {
+            InitError(strprintf(_("Error creating %s: You can't create non-HD "
+                                  "wallets with this version."),
+                                walletFile));
+            return nullptr;
+        }
         walletInstance->SetMinVersion(FEATURE_NO_DEFAULT_KEY);
 
         // Generate a new master key.
@@ -4301,7 +4307,7 @@
 
         walletInstance->ChainStateFlushed(chainActive.GetLocator());
     } else if (gArgs.IsArgSet("-usehd")) {
-        bool useHD = gArgs.GetBoolArg("-usehd", DEFAULT_USE_HD_WALLET);
+        bool useHD = gArgs.GetBoolArg("-usehd", true);
         if (walletInstance->IsHDEnabled() && !useHD) {
             InitError(
                 strprintf(_("Error loading %s: You can't disable HD on an "
@@ -4312,8 +4318,7 @@
 
         if (!walletInstance->IsHDEnabled() && useHD) {
             InitError(strprintf(_("Error loading %s: You can't enable HD on an "
-                                  "already existing non-HD wallet or create "
-                                  "new non-HD wallets."),
+                                  "already existing non-HD wallet"),
                                 walletFile));
             return nullptr;
         }
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
@@ -18,6 +18,15 @@
         self.extra_args = [[], ['-keypool=0']]
 
     def run_test(self):
+        tmpdir = self.options.tmpdir
+
+        # 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)