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

Licoln Hoel dominates B.C. Summer Games triathlon

West Kelowna teen competes in the final today

Okanagan Wildfires: An evening update on wildfires and evacuations

A Saturday evening look at the major wildfires impacting the Okanagan and Similkameen.

Progress being made on Okanagan wildfires

Danger not over, fires could flare up again

Evacuation numbers remain at nearly 1,000 as B.C. wildfires rage on

200 firefighters and 18 helicopters were working to increase the containment of the fires

Car thief nabbed by Mounties on wildfire duty

RCMP working wildfires deploy spike belt to nab alleged auto thief from Oliver.

BC Games: Day 2 comes to an end

Hundreds of medals have been handed out at the 2018 BC Summer Games in the Cowichan Valley

Haida Gwaii village faces housing crisis, targets short-term rentals

Housing is tight and the village is pretty close to zero vacancy

Progress being made on Okanagan wildfires

Danger not over, fires could flare up again

B.C. VIEWS: Unions regain control of public construction

B.C.’s 40-year battle swings back to international big labour

B.C. mining company, involved in 2014 spill, ordered to pay lost wages

Mount Polley Mining Company must pay wages to 26 employees who were laid off without proper notice

Update: Wildfire near Summerland mapped at 118 hectares

The Mount Conkle wildfire is 90 per cent guarded

Two significant wildfires burning in southeastern B.C.

More than 20 fires were burning in the Southeast Fire Centre as of Saturday afternoon

Volunteers provide the glue that keeps BC Games moving

The 2018 Cowichan Summer Games had more than 2,300 volunteers on hand across Vancouver Island

No Name brand chicken nuggets recalled due to possible salmonella

Canadian Food Inspection Agency says multiple illnesses reported in B.C., Alberta and Ontario

Most Read