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Canada's Penny No More, Feb 4, 2013

Feb 5, 2013

That's it for Canada's penny: Today is the last day the coin will be distributed after minting stopped in May as a cost-saving measure. Still, there are 6 billion pennies in circulation, so they could be around for a long time: "We estimate three to four years" as they are pulled from circulation, says a Royal Canadian Mint rep. For cash shoppers, that means prices will be rounded up or down to the nearest nickel; for those paying by card, prices won't change, the Province reports.

Consumers can drop pennies off at their local banks, donate them to charities, or use them at stores' discretion, the Globe and Mail notes. Just 52.9% of Canada's Retail Council members are ready for the shift, the council found. Some 81.5% think it'll cost them no more than $5,000. As for consumers, "the net impact ... is that it balances out," says an analyst.
An Introspective World reflects on more than 150 years of Canadian pennies:

  • The first was minted in 1858.
  • Since 1908, 35 billion have been minted—enough to circle the Earth 16 times.
  • A 1936 one-cent coin known as the Dot is worth a lot more than a cent: One recently sold for $402,500.

On a separate note, today's Canadian Google doodle features a penny, the Global News reports.

Now how long until the Nickel, Dime and every other physical currency go the way of the penny. We all know electronic transfers are the way of the future, well today has been a significant stepping stone in my opinion.

We can also look forward to the United States discontinuing the penny. Will the news of US penny discontinuation receive as much media attention as that of the Canadian penny? We expect the US to cancel the penny program before 2014 and move on parallel with Canada in eliminating the coinage currencies from circulation.

It is for the best to progressively eliminate the coin currency from circulation. As everyone over 18 is eligible for a debit/credit card the need for physical currency becomes redundant, aside from children and people with bad credit, nobody should be without some sort of electronic payment capability.



Related Posts
Last Days of the Canadian Penny
March 30, 2012

Ottawa Keeping Penny Alive Till 2013 to Appease Retailers’ Concerns
July 31, 2012