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

Evacuation alert issued for City of Kimberley

Three hours after an evacuation order was issued for the St. Mary Valley, an evacuation alert was issued for the nearby community of Kimberley.

Show N’ Shine attracts bumper entries

The 2018 Show N’ Shine attracted over 1100 people and 80 entries – the most in the event’s history

GALLERY: 2018 Wapiti Music Festival

Did we spot you at Wapiti Music Festival over the weekend in Fernie?

No raining on Wapiti’s parade

Fernie music festival huge success despite less than ideal weather conditions

Elk Valley wildfires update

Hot, dry conditions to continue as BC Wildfire Service battles wildfires across the region

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

Feds to allow charities to engage in political, but not partisan, activity

The plan is to allow charities to pursue political activities

Trump suggests Canada has been sidelined from latest NAFTA negotiations

Canadian officials have insisted they’re unfazed by being left out of the discussions

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

Most Read