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

Folk legend Arlo Guthrie returns to Vancouver Island MusicFest

Island MusicFest executive producer Doug Cox went to the well one more… Continue reading

Changes coming to CVRD watering restrictions

The changes will come into effect in May

Comox marijuana bylaw vote set for today

A decision on a contentious Comox bylaw surrounding the plan to temporarily… Continue reading

Big Read: locked out of the woods

Vancouver Islanders struggle to balance back country public access with private land protection

NDP gives Liberal budget ‘failing grade’ on gender equality

Nanaimo-Ladysmith MP Sheila Malcolmson said budget doesn’t do enough to focus on pay equity

CONTEST: Win a whale-watching tour for four

Where in the world are the Snowbirds?

B.C. towns rank in top honeymoon destination worldwide

Vernon, Kaslo, Sunshine Coast and the Island hit Expedia.ca’s list of top 18 honeymoon destinations

Men arrested at Starbucks say they feared for their lives

Rashon Nelson and Donte Robinson were arrested in a Philadelphia Starbucks, becoming viral video

Olympic gold now official for B.C. weightlifter

Christine Girard’s bronze medal from 2012 Olympics upgraded to gold, IOC announces

Did a Canadian shoot down the Red Baron? A century later, debate hasn’t quit

Om April 21, 1918 two Canadians in their canvas-covered Sopwith Camel biplanes engaged the enemy

VIDEO: Canadian teen lands invite to Royal wedding

Prince Harry and Meghan Markle have invited Faith Dickinson, founder of Cuddles for Cancer

B.C. liquor server wage to be phased out by 2021

Piece work pay for farm workers rises, but stays in place for now

Vancouver Whitecaps sign 16-year-old B.C. player

Grade 10 student from Langley joins MLS club

Most Read