Switching to a Dollar Coin: Seems Like a No-Brainer

March 7, 2011 7:44 PM | 3 min read |
G-8 CountryHighest Widely Circulated CoinU.S. ValueLowest BillU.S. Value
Canada2 Dollar$1.97 5 Dollar$4.92
France2 Euro$2.77 5 Euro$6.92
Germany2 Euro$2.77 5 Euro$6.92
Italy2 Euro$2.77 5 Euro$6.92
Japan500 Yen$6.01 1,000 Yen$12.02
Russia10 Ruble$0.33 50 Ruble$1.67
United Kingdom2 Pound$3.18 5 Pound$7.95
AVERAGE
$2.83
$6.76
United States25 Cents$0.25 1 Dollar$1.00

The chart above is based on data from the Dollar Coin Alliance (DCA), a coalition of small businesses, budget watchdogs, trade associations, and private companies advocating that the U.S. transition to the dollar coin.  The DCA is asking Congress to eliminate the dollar bill in favor of the dollar coin to save billions annually in taxpayer money. According to the DCA:

1. Each year approximately 3.2 billion $1 bills are removed from circulation due to wear and tear. They are not recyclable, so they are shredded and most are deposited in landfills. Dollar coins have a lifespan of 30 years or more, while $1 notes last approximately 2-3 years. A $1 coin that is produced for less than 16¢ would replace 17 bills that would have to be printed for a cost of 47¢.

2. The private sector experiences even greater cost savings and increased revenues from $1 coins. Jammed $1 bills in vending machines cost the industry $1 billion in annual repair costs and lost sales. According to the transit industry, it costs six times more to process $1 bills than $1 coins.

3. Other countries have already recognized the cost savings and benefits of the dollar coin, including Canada, the European Union, and Japan. When Canada transitioned to a dollar coin 25 years ago, the government realized savings more than ten times initial estimates.

4. The United States has one of the smallest denominations of paper currency among the major economies of the world (G-8 Countries). The $1 bill is worth less than any of these other bills except for the Russian Ruble (see chart above).

5. According to a January 2011 poll, Americans favor the transition to a dollar coin by a two-to-one margin once the potential government savings are explained.
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