Channels
× Select City
×
×
×
News

Bye-bye nickel? Experts predict the coin's elimination in 5 years

D8d194f40cb13417f79d4d8daee34fdb?s=96&d=mm&r=g
DH Vancouver Staff May 03, 2016 10:29 am

Canada has already done away with the penny, so could the nickel be next? That’s what Quebec bank Desjardins predicts will happen within the next five years.

Should Canada make the move, eliminating the nickel would have ripple effects on other cash denominations, says Desjardins, and would require coins to be produced in multiples of 10. So, if the nickel gets the boot, so does the quarter.

[am2_see_also]

“Due to the gradual increase in the cost of living and decreased buying power of small coins, the time will come when the nickel will have to be eliminated,” reads the recently released Desjardins study.

But the nickel isn’t the only denomination the bank suggests altering. Despite the introduction of stronger polymer notes, Desjardins notes changing over to a $5 coin will be justifiable due to the evolution of buying power.

Cash-free Canada?

Is Canada ready to go completely cash-free, though? Not quite. The banks says the amount of cash in circulation continues to increase at a pace of 4% to 7% per year, and even when nominal GDP is taken into account, there’s still been a slight uptick in the use of cash since 2009.

Image: Desjardins

Image: Desjardins

Other countries might be ready to take the cashless plunge, though. Sweden has seen a sharp decrease in the use of cash, which represents about 1.5% of the country’s nominal GDP, compared to 4% 15 years ago.

Image: Desjardins

Image: Desjardins

Going cashless could be a positive move towards eliminating underground and illegal activity, says the study, although it could also force criminals to be more innovative. Bitcoins could become a popular method of payment for underground economies, as well as currency from other countries.

Additionally, a cash-free society makes payment methods more difficult for seniors, people living on low incomes, and people with lower education levels.

Dh newsletter logo

Get direct access to our top weekly content, contests, and perks.


D8d194f40cb13417f79d4d8daee34fdb?s=96&d=mm&r=g
DH Vancouver Staff
Daily Hive is the evolution of Vancity Buzz, established in Vancouver in 2008. In 2016, the publication rebranded and opened newsrooms in Calgary, Toronto, and Montreal. Send story tips to [email protected]

© 2018 Buzz Connected Media Inc.