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

Thieves keep Oceanside RCMP busy

Thefts from vehicles, businesses, mailboxes revealed in latest crime report

Parksville Qualicum Beach students the catalyst for #TrustYourself campaign

Social media initiative urges survivors of sexual assault to seek medical care

One new face on Qualicum school board

Laura Godfrey brings experience as Sea to Sky trustee, interest in Indigenous learning

$75K deal for advertising at Oceanside Place

RDN set to directly award contract to ad firm

ORCA continues push for track upgrade at Ballenas

Running association official plans to meet with MLA on Thursday

VIDEO: Stan Lee leaves posthumous message for his fans

Marvel Comics’ co-creator died on Monday at the age of 95

‘This is gangster,’ bait car thief declares on video

Footage from Abbotsford gains attention on social media

B.C. to fund gender-affirming surgeries for transgender people

Roughly 100 people in B.C. travel each year out of province for lower surgeries

U.S. mayor and dying dog’s roadtrip to B.C. goes viral

First vacation in three years came a month after blood cancer diagnosis

Federal fall update expected to offer more support for struggling news industry

Ottawa committed $50 million over five years for local journalism in ‘underserved communities’ last budget

UK’s May appeals to public on Brexit, braces for more blows

British Prime Minister Theresa May answered questions from callers on a radio phone-in, the day after she vowed to stay in office

Ottawa apologizes to Japanese family in B.C. after chopping historic cherry trees

Plaque installed in Prince Rupert to honour the memory of Shotaro Shimizu

UPDATED: $136M in transit funding coming to B.C.

The announcement was made at the BC Transit yard in Langford on Friday morning

Two B.C. police officers, held in Cuba for months, cleared of sex assault allegations

Port Moody Const. Jordan Long and Vancouver Const. Mark Simms have been in Cuba since March

Most Read