Canada’s current coin currency is costing the nation a lot of money, and in order to rein in unnecessary costs, the government should eliminate the nickel, says a new report from one financial institution. Perhaps the future will be free from quarters, too.
With Canada already eliminating the penny, Desjardins explains that the Canadian government could start a plan to phase out the nickel within the next five years. Moreover, Canada, the bank says, should consider phasing out the quarter and replacing it with a brand new 20-cent coin and a 50-cent coin.
The purpose of these moves would be to minimize the costs of coin production and using them. For instance, the one-cent coin cost Canada approximately $130 million per year. The Canadian government phased out the penny in 2012.
After reading this report, one would think that the financial institution suggests embracing a cash-free society like other nations have. However, Desjardins argued in its report that it should be wary of such a move. It added that Canada is unlikely to transform into a cashless country anytime soon.
“Even though cash is in decline in Canada as a method of payment, in our view, it is very unlikely to vanish altogether over the next 10 to 20 years,” said Desjardins in its report. “Cash is still involved in nearly 40 per cent of transactions, accounting for over 20 per cent of their value. Consumers continue to be very much attached to this method of payment.”
A few years ago, Desjardin advocated for phasing out the $5 banknote in favor of a $5 coin. But it abandoned this idea because of the new polymer banknotes that last a lot longer and save the taxpayer money.
This sounds a lot like a Groucho Marx bit…
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