Perhaps its time to ditch coin before it drags cash down

Perhaps it's time to ditch coins. Yes, you read that right. Whether it's bronze, silver or the new bimetallic coins they have become more of a nuisance than a convenience and if you really want to save cash then ditch coin.

First of all, the manufacturing and distribution of coins isn't cheap. According to the US Mint, it costs approximately two cents to produce a penny and seven cents to produce a nickel. This may seem like a small amount, but it adds up when you consider the millions of coins that are circulated each year. Taxpayers are essentially footing the bill for coins that we rarely use and that often end up sitting in jars or getting lost in the couch cushions.

Coins also take up space and add unnecessary weight to pockets or purses. There's nothing worse than being weighed down by a pocket full of change.

The usefulness of coins is also declining. With the rise of digital transactions, people are using cash less and less. Many businesses have even started to go cashless in order to reduce the risk of theft and improve efficiency. In fact, a 2019 study by the Federal Reserve found that cash makes up only 26 percent of all transactions in the US, with most payments being made through debit, credit, or mobile devices.

As coins become less popular, their value is also decreasing. The penny, for example, has become almost obsolete. Fewer and fewer retailers accept pennies, and many people simply round up or down when making transactions. This has led to a situation where the cost of producing and distributing pennies exceeds their actual value.

Lastly, coins are bad for the environment. As previously mentioned, coins take a significant amount of resources to produce and distribute. This process emits greenhouse gases and contributes to pollution. Additionally, when coins are no longer needed or are thrown away, they end up in landfills or the ocean. This adds to the already present landfill crisis and contributes to the plastic pollution that affects our oceans and wildlife.

So what's the solution? Well, it's a no-brainer. We should ditch coins and take the first step towards a cashless society. There are some great wallet based solutions creating the innovations needed to make this possible. and pioneering work on the conversion of coin into more practical solution and the charity sector is making great progress with contactless solutions. To many this may seem like a radical approach, but it's the best chance we have to create a sustainable solution for cash.

A coinless society would offer numerous benefits. For starters, it would save taxpayers money by reducing the need for coin production and distribution. It would also benefit businesses by making transactions faster and more efficient and last but not least it would release a significant amount of signorage for the treasury to reinvest.

Of course, there are concerns about a cashless society. Some worry about the potential for increased financial data breaches, while others point out that it may be harder for low-income individuals to access digital payments. However, these challenges can be addressed through proper regulations and policies that ensure fair and accessible financial services for all.

In conclusion, it's time to start thinking seriously about ditching coins. They are an outdated relic of a bygone era, and their usefulness is dwindling rapidly. A coinless society may seem like a daunting prospect, but it offers numerous benefits for the economy, businesses, and the environment. As we move towards a more digital world, we should consider leaving the jingling and jangling of coins behind.