Desjardins says that with penny long-gone the nickel’s days are numbered

First the penny, now the nickel. Coins could be on the chopping block as more move to cashless pay

A Desjardins economist says it’s only a matter of time before Canada’s nickel goes the way of the penny.

Senior economist Hendrix Vachon says that the five-cent piece will seem increasingly less useful because of its low purchasing power and the costs to maintain it.

The same reasons were used as reasons to do away with the penny in 2013, though Vachon says a recycling system for the nickel means the Mint isn’t under as much pressure to produce it as it was with the penny.

READ MORE: Canadian grocers make $3M per year from penny-rounding: UBC study

He believes that if Canada were to phase out the nickel, cash payments would be rounded to the nearest 10 cents and the quarter would become less relevant.

Vachon adds the introduction of a 20-cent coin could be considered, and that the little-used 50-cent coin would become more relevant.

He points out that New Zealand did away with its five-cent coin more than a decade ago, making cash payments more efficient.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Mills Memorial Hospital financing formula released

Regional taxpayers to pay $113.7 million for new facility.

Greyhound cleared to end routes in northern B.C., Vancouver Island

Company says nine routes have dropped 30% in ridership in last five years

How the provincial budget will play out in northwestern B.C.

Price of gasoline to rise and expect MSP premiums to disppear

NDP budget offers no way to pay for new programs: Ellis Ross

MLA highly critical of government’s abandonment of major projects

New hospital cost to taxpayers still unknown

Ellis to probe budget estimates: “I’m still not convinced it will actually go ahead”

VIDEO: Top 10 B.C. budget highlights

The NDP is focusing on childcare, affordable housing and speeding up the elimination of MSP premiums

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Team USA beats Canada 3-2 on the shootout to take home Olympic gold

Americans win their first gold medal since 1998

Two Haida men detained for crossing U.S.-Canada border

Edenshaw and Frisby travelled from Alaska to Prince Rupert for the All Native Basketball Tournament

Alberta takes out full-page ads in B.C. over strained relationship

It’s the latest move between the two provinces over progress on Trans Mountain pipeline expansion

B.C. teacher suspended over allegedly using N-word in worksheets

Trafalgar Elementary teacher under investigation by Vancouver School Board

Toddler swept away in Ontario floods

Toddler missing as flooding forces thousands from their homes in Ontario

BC BUDGET: New money helps seniors’ care shortage

Job stability for care aides key to recruitment, union leader says

Mixed messages on B.C.’s efforts to cool hot housing market

Economist says undersupply of homes in Metro Vancouver, Victoria and Kelowna will keep prices high

Most Read