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

Watch: Westerner Days in full swing

The heat and the thunderstorms didn’t stop anybody

The Expo Wheel ride a no-go at Westerner Days

Red Deerians take in Westerner Days all week long

20,000 swarm to Westerner Days on day two

Westerner Days Fair & Exposition saw the community meet-up for Tim Hortons Kids Day

WATCH: Red Deer Airport’s Boot Scootin BBQ supports great cause

Airport hopes to donate $4,000+ to Aspire Special Needs

Four-car crash, including RCMP vehicle, on Highway 2

Two sheriff’s vehicles were also involved in the collision that closed down one lane

WATCH: Red Deer Airport’s Boot Scootin BBQ supports great cause

Airport hopes to donate $4,000+ to Aspire Special Needs

Cigarette packs with graphic images, blunt warnings are effective: focus groups

Warnings considered effective flag ailments smoking can cause, like colorectal and stomach cancers

Canada’s title hopes quashed at Rugby Sevens World Cup in San Francisco

On the men’s side, Canada was eliminated in the round of 16 as they were shut out by Argentina 28-0

Astronaut drops in on Kraftwerk gig, plays duet from space

Alexander Gerst becomes an astronaut musician with live performance from International Space Station

Four people taken by STARS to Edmonton

Blackfalds RCMP investigates single vehicle rollover south of Hwy 11A

Trump was taped talking of paying Playboy model: AP source

Source says former personal lawyer Michael Cohen secretly recorded discussion prior to 2016 election

UPDATED: Remains of all eight Bruce McArthur victims now identified, Toronto police say

McArthur worked as a landscaper and allegedly concealed the remains of several men in planters

Premiers to wrap up 2 days of meetings at New Brunswick seaside resort

Meetings held in the scenic seaside town of St. Andrews on Thursday focused on trade

World’s translators push back on forcing Trump interpreter to testify

Democrats had asked translator to testify about Trump’s lengthy conversation with Putin in Helsinki

Most Read