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<p>[QUOTE=&quot;NorthKorea, post: 1577494, member: 29643&quot;]<b>Intra-bank commerce</b></p><p><br /></p><p>As others have said, if you&#039;re going to mint a circulating coin once per three years, shutdown the mint.</p><p><br /></p><p>As for the impact of losing the penny, this is essentially what can &quot;fix&quot; the rounding issue:</p><p><br /></p><p>Stores will go to a &quot;receipt&quot; credit system, so your &quot;change&quot; would be stored on your receipt, which would act as a script. Since people would tend to lose these, eventually, each store would have a cash surplus on their books. Since receipts could potentially be forged, a more viable alternative would be akin to what Bank of America does currently: Imposed savings.</p><p><br /></p><p>You would be asked to sign up for a discount club with the retailer. Whenever your change didn&#039;t work out to a nickel, your account would be credited the difference. You would then have this &quot;credit&quot; applied to your next purchase, and the cycle would continue until you finally accrued a net positive of a nickel, at which point, your account would mod 5 to zero.</p><p><br /></p><p>The cost savings to the mint would possibly save up to 50% of the US Mint&#039;s annual budget. That cost savings to the US government would be further increased by the net loss of M2/M3 in the money supply. The net result would actually be DEFLATION in the short run, as there&#039;d be less money supply. Eventually, people would be normalized to the idea of 5-cent pricing, and the stores/government would get rid of math which yields non mod-20 money structure.</p><p><br /></p><p>I&#039;m pretty sure we&#039;ve had several interpolations of this debate. The two most common versions are the penny and the dollar/2-dollar coin.</p><p><br /></p><p>I still say the Mint would be best served to go with:</p><p><br /></p><p>5-cent, 20-cent, $1 coins. $5, $20, $100, $500 bills.</p><p><br /></p><p>I forgot the intra-bank comment...</p><p><br /></p><p>Everyone focuses on inter-company and inter-bank commerce, but as we shift toward a cash-free society, the penny will affect intra-bank accounting. This is akin to the Thai satang. Even though no one uses satang, they are an official currency unit. Banks use them in inter-bank commerce and essentially settle them in intra-bank accounting. As a result, the Royal Thai Mint still made 1 satang coins as recently as 2009. The coin contains 0.5g of aluminum. At that time, aluminum cost around 0.19c per gram. A satang is approximately equal to 1/30 of 1c. So, the Royal Thai Mint (in materials alone) was purchasing $10 of aluminum to produce $1.65 or so in coins annually for inter-bank accounting.[/QUOTE]</p><p><br /></p>

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