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

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 year’s 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.

"It’s 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

VOTER FRAUD: Was the Scottish Independence Referendum Rigged to Fail?
2014 09 20
Was voter fraud committed during the Scottish Independence referendum? It has been confirmed that the names of 10 people were already crossed off a voter list prior them voting inside a polling station. According to reports, the Glasgow City Council confirmed that there were ten cases of suspected electoral fraud occurring at polling stations following the Scottish referendum vote on the 18th. ...
Scandinavians Split Over Syrian Influx
2014 09 20
This exemplifies the insanity of Scandinavia. The narrow victory of the left-leaning Social Democratic Party in Sweden’s elections last Sunday marked a broad shift in its politics. But a new coalition government is unlikely to reconsider one of the country’s most challenging policies: its response to the Syrian civil war. Sweden has taken an open-door approach to people fleeing the conflict, ...
The Israel lobby in United Kingdom - Who Runs Britain?
2014 09 20
Who runs British politics? Who in Britain supports all the wars the UK has been involved in? The Israel Lobby in the UK - Full Documentary By Peter Oborne from Dispatchees Links from Youtube: Zionist attack on western civilization Reed Douglas - The Controversery of Zion Source: youtube.com The cowardice at the heart of UK relationship with Israel Close friends and allies: Prime Minister David Cameron ...
Another Palestinian Mass Grave Discovered, Evidence of Massacre
2014 09 20
Another mass grave discovered, evidence of 1948 Judaic holocaust by bullets, knives and bludgeons against Palestinians. The Israeli military admits to have been surprised by the abilities of Palestinian resistance fighters during its recent war on the Gaza Strip. A top Israeli military official says he’s impressed by the training of Palestinian resistance fighters from Hamas and the Islamic Jihad groups. He ...
Russian Media to be owned by Russians
2014 09 20
Comment: Russian media by and for Russians? Wow, revolutionary! I guess they are stick of foreign oligarchs and zionist with dual citizenship. Duma seeks limits on foreign ownership of Russian media companies A group of opposition lawmakers have prepared a bill that orders Russian mass media companies to have at least 80 percent of their stock held by Russian investors. The bill is backed ...
More News »