How often do you carry pennies? Pennies are much more commonly seen in the trays and charity boxes than in any willful transaction. No one wants to carry pennies to buy things with. Pennies are more than just an inconvenience. It costs the United States 2.4 cents to create one penny. Last year, America Jr. (also known as Canada,) removed the penny. They expect to save $11million per year in production costs. The .01 dollar still exists for non-cash transactions, but any cash transaction must be rounded to the nickel.
Many in the United State agree. No one carries pennies. Why not take it a step further? No one wants to carry nickels anyway. The nickel costs 11.8 cents to make. That’s a loss of 66%! No wonder we’re in debt. Cut out the nickel. Make the dime the smallest denomination; it’s the physically smallest coin anyway.
While we’re at it, we might as well eliminate physical currency. Most of us store a majority of our money electronically in banks anyway. That way we could eliminate 100% of the production costs. You don’t need paper money. Many people are using an open source currency called BitCoin. BitCoin (BTC) only exists on the internet and is backed by public promise. BTC is broken down into “satoshis” which are 0.00000001 BTC, and no pennies are needed.
We don’t need physical currency. The Kindle is proving that paper is obsolete. We definitely don’t need pennies. They are an unnecessary burden on our change jars and the US Treasury. You don’t need them. You won’t miss them.
That’s just my two cents.