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The MIssing Change
Cash transactions were already on the decline in 2019 as consumers switched to electronic payments. The pandemic exacerbated this as retailers and consumers turned to online shopping or contact-free card and app transactions.
When people did make the rare cash purchase, they were more likely to keep their change than use it in a subsequent transaction.
The US Coin Task Force, formed specifically to address the issue, reported in May 2021 that much of the nation’s $48.5B in coins were sitting in America’s 128m households.
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Minting More Coins
In 2021, the Mint produced 14.5B coins, and is on pace to produce another 13B this year, Todd Martin, deputy chief of corporate communications for the US Mint, told The Hustle.
But new coins typically account for less than 20% of coins in circulation each year.
And because the majority of coins still circulate through the economy via transactions and coin recycling, the Coin Task Force is urging consumers to do their part to “get coin moving.”
The action plan is to:
- Using exact change when making a purchase.
- Exchanging change at banks or kiosks.
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