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I found the bit of this article on the Canadian penny a bit irrelevant, and perhaps misleading. Or, I'm under the impression that it was discontinued due to the
by danbolt 11y ago
I found the bit of this article on the Canadian penny a bit irrelevant, and perhaps misleading. Or, I'm under the impression that it was discontinued due to the fact that one or two cents were a fraction of the average purchase, rather than some sort of initiative to discourage cash usage.
I'm not very interested in using Bitcoin at the moment, but I like how its design could enable me to have some representation of electronic currency that could give some of the decentralized flexibility of cash. Perhaps a cashless society could employ structures such as those.
- soperj 11y agoYeah, the Canadian penny was discontinued because it actually cost more than a penny to make. Also pennies are useless.
- Afton 11y agoI don't think this is true. Coins are multi-use. Obviously the government wants to pay as little as possible in production costs, but there isn't any reason that the production cost has to be strictly less than the unit-cost of the money.
- hluska 11y agoA relevant quote from the Royal Canadian Mint: In Economic Action Plan 2012, the Government announced it would phase out the penny from Canada's coinage system. The decision to phase out the penny was due to its excessive and rising cost of production relative to face value, the increased accumulation of pennies by Canadians in their households, environmental considerations, and the significant handling costs the penny imposes on retailers, financial institutions and the economy in general. (Source - http://www.mint.ca/store/mint/about-the-mint/phasing-out-the-penny-6900002#.VsTJNkXOfv4 http://www.mint.ca/store/mint/about-the-mint/phasing-out-the...)
- Afton 11y agoHuh, they do say 'relative to face value'. I still think that reasoning is flawed, but I'm not going to argue with the RCM. Thanks for the link!
- deleted 11y ago[deleted]