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

Man rescued from cliff on Harbour Road in Port Alberni

Fire department uses new equipment in rope rescue

Alberni Valley firefighters head to Fort St. James to assist with B.C. wildfires

‘We need to make sure first and foremost our community is protected’: Gilday

City of Port Alberni agrees to three-year extension of track surface

Bob Dailey Stadium track has experienced ‘degradation and tears’ since resurfacing in 2013

Could Thunder in the Valley roar at Alberni’s airport once more?

City of Port Alberni offered Stamp Avenue as a temporary solution

Kim XO is Black Press Media’s fashionista

Starting Sept. 7, stylist Kim XO will host Fashion Fridays on the Life channel on Black Press Meida

B.C. judge who cried during a victim statement to rule on recusing herself

The judge will decide if she’ll disqualify herself from sentencing a man for sexual assault

Photographer files complaint with police after alleged assault on the job

Toronto photographer says he was attacked while covering a protest

Happy birthday Boler: An anniversary gathering of the cutest campers in Winnipeg

Hundreds of the unique trailers in Winnipeg to celebrate the 50th anniversary of the Manitoba invention

Details revealed about Fredericton shooting

Judge lifts publication ban on court documents related to the Fredericton shooting

Minister optimistic after 2 days of Columbia River Treaty negotiations

Canadian and U.S. officials met in Nelson Wednesday and Thursday to discuss future of the treaty

Man dies in B.C. police cell while awaiting court hearing

An independent investigation is underway after a man died while in Penticton police custody Aug. 16

RCMP appeal for tips, dashcam footage in German tourist shooting west of Calgary

The Durango crashed into the ditch after the shooting near the Goodstoney Rodeo Centre

2 nurses attacked at B.C. psych hospital, union calls for in-unit security

PHSA says that in-unit guards would do more harm than good

Most Read