Recently the U.S. Government Accountability Office (GAO) issued a proposal to the Treasury and Federal Reserve indicating that the US could save approximately $5.5 billion during the next 30 years if they eliminate the $1 bill and used $1 coins instead. According to the agency’s report, dollar bills wear out much faster than coins requiring the government to print new bills.
The report was not the first time the GAO has recommended switching to coins, but its past efforts were hindered because the $1 bills had remained in circulation. The United Kingdom and Canada pulled their bills from circulation to hasten public acceptance when they made their switch to coins.
Of course, there will be some upfront transitioning costs associated with the switch. Private companies, who oppose the switch, said altering their current equipment to accept the proposed $1 coin would be an expense. There was no mention if there would be a new $1 coin but currently many new vending machines accept the current $1 coin in circulation.
Do you think the US should switch to coins? Do you think it will actually happen this time? Share your thoughts below.