Canada Scraps Penny, Goes After Nickel: The Path to Cashless Society?
2013-02-07 0:00

From: CBCNews

Will nickel follow penny out of Canadian coin circulation?



5-cent coin should be next to go, says economist

As the penny is set to begin retirement next month, there are already calls to put the nickel out to pasture as well.

[Mint officially ends distribution of Canadian penny - Feb 4, 2013]

The Royal Canadian Mint starts collecting one-cent coins on Feb. 4 for melting and recycling of the metal content, with some six billion pennies expected to be surrendered by Canadians over the next six years.

Finance Minister Jim Flaherty announced the surprise demise in last years budget, saying the penny had become a nuisance.

And a former Bank of Canada economist says the nickel is also becoming obsolete, and should be next in line for retirement.

"We see less and less people now ... digging in their wallets for nickels," Jean-Pierre Aubry said in an interview. A retired 30-year veteran of the Bank of Canada, Aubry has been a leading proponent of withdrawing the one-cent piece from circulation.

In papers and presentations for Desjardins Group over the last few years, Aubry used economic models to show that the penny should actually have been killed in about 1982.

That was a tipping point, as more Canadians hoarded the coins and the Royal Canadian Mint was pressed to churn out billions more to keep retailers stocked, costing the government up to $11 million annually.
5-cent coins hoarded by Canadians

The last pennies minted on May 4 in Winnipeg were costing about 1.6 cents each to manufacture. Aubry also estimates retailers, banks and consumers have absorbed about $140 million in handling costs each year, creating an unnecessary drag on the economy.

Even though Finance Canada faces a one-time net cost of $38 million to retire the penny, the long-term savings to government and to the economy will be substantial.

Aubry argues the nickel will soon hit the same tipping point the penny did in 1982, as Canadians hoard them in greater numbers, forcing the mint to distribute up to 350 million each year to meet retail demand.

"Its a sign that the coin is not well used," he said.

The Royal Canadian Mint has teamed in recent years with Coinstar Inc. to place automated coin-sorting and counting kiosks in grocery stores and other retail outlets to prod Canadians into circulating coins now stuck in jars and drawers. Most of these recycled coins are pennies, but many are nickels.

A spokesman for vending-machine operators told a Senate committee in 2010 that Canada should just dump the little-used nickel.

"As far as our industry is concerned, eliminating the penny is a good step and a smart business decision," said Kim Lockie, then-president of the Canadian Automatic Merchandising Association.

"We suggest the nickel go at the same time. If there is a little bit of a problem, we get it all over with at once."

[...]

Read the full article at: cbc.ca



Related Articles
The Cashless Society is Almost Here And With Some Very Sinister Implications
Sweden aims to be cashless society
Canada Takes Unprecedented Step Towards A Cashless Society
Is a cashless society around the corner?
P2P Currency - Bitcoin
Dr. Paul Craig Roberts: Our Collapsing Economy and Currency
Think tank says Euro currency has 1-in-5 chance of lasting the decade


Latest News from our Front Page

No Jab, No Pay reforms: Religious exemptions for vaccination dumped
2015-04-20 20:03
Religious exemptions for childhood vaccinations will be scrapped to toughen Australia’s new “no jab, no pay’’ laws stripping welfare from parents who refuse to vaccinate their children. Social Services Minister Scott Morrison revealed he is dumping the last remaining exemption on the books after holding talks with religious leaders. Just a week after The Sunday Telegraph revealed Mr Morrison was scrapping exemptions ...
Inside David Lynch: An Esoteric Guide to Twin Peaks
2015-04-20 18:24
‘I learned that just beneath the surface there’s another world, and still different worlds as you dig deeper.’ – David Lynch If you’ve ever sensed the flimsy, thin veneer of what parades itself as the good ole US of A, and felt a bit like you’ve been sold a fake, then David Lynch’s Twin Peaks is a series you must see. ...
Third-gender toilet sign – now a reality in Sweden
2015-04-20 18:29
If you don’t identify yourself as a man, a woman or are officially handicapped — where should you go to relieve yourself? In Sweden, the social justice warriors have solved the problem by inventing a third-gender toilet sign. A couple of years ago, the Swedish language was introduced to a new personal pronoun, “hen“, to replace gender specific hon (she) and ...
Feminist goes crazy when compared to Swedish nationalist
2015-04-20 4:56
A picture of a media acclaimed feminist next to a young nationalist girl got real big attention in Swedish media last week. It is “hate” and “mockery” to show the difference between the two, according to the collective Swedish press. When the young nationalist Hanna Lindholm (member of the Sweden Democratic Youth) published a picture on internet, where she compared ...
Massive pollution scandal in Norwegian fjord
2015-04-20 4:53
The Norwegian government today gave the green light to one of the biggest single instances of pollution in the country's history. A new mine will dump its toxic tailings directly into the Førde fjord in the west of Norway. "It is shocking that Norway is the only country in the world allow new projects of this kind", said Lars Haltbrekken of ...
More News »