Why not use plastic currency?

Question

There is a genuine problem with the continued minting of coins, in that it costs more to make each individual coin that the coin is worth.

And I just read on Yahoo news that, conversely, coins are worth more melted down than their face value.

If this is the case, why not switch to just making molded coins out of plastic? Or plexiglass? Or any cheap, tough material?

Sure it'd be out of bounds of tradition, but would it solve the problem?

Answer 1

Reading your question title I thought you were talking about debit. Although such plastic currencies are used more and more, I don't think they will completely replace coins anytime soon.

The only story I saw was talking about coins being used. Most of them made 5 years ago, 10 years ago, etc. and now worth more for their metal. That doesn't cost anything more in production, they exist already.

Do you think this is the first time this has happened? Don't worry, they will change the make up of coins, just as they have in the past. Coins use to be made out of silver, and they switched when that became to expensive. But I still find a rare silver coin in my change.

They may change to something like your suggestions eventually. Probably not plastic, as most could be melted. Plexiglas maybe, if they can make sure it can't be counterfeited. I think they will probably stick to metal for awhile, just the cheapest possible metals.

Answer 2

We do use plastic currency. It's called debit cards and credit cards! You have a good point but there is a cost to switching. Think of all the vending machines and Coinstar machines etc in the entire US that would have to be modified or replaced. The gov't might save money but at enormous expense to the citizenry. Would be better just to eliminate pennies.

Answer 3

Plastic, plexiglass and those things are too readily available or easy to make to counterfeit. I really think there just needs to be a new way of conducting transactions. The thing today is to use a card (credit/debit, or gift cards). Someone should come up with a better way of using that system and they may be on to something.

Answer 4

Cheap materials by definition are not tough. As to plastic currency, Australia uses plastic, rather than paper, to make all of its "paper" money; the coins still remain metal...

Answer 5

Yep, you've got the right idea and companies are already following your thought process. I was waiting for the train the other day and saw an ad that said "Plastic is the new currency."

Don't be too concerned about this. It's gonna happen sooner than you think.

Answer 6

Credit/Debit Cards growing eventually will replace coins

Answer 7

why? there is already micro chips that can be inserted into the forehead and a scanning device just takes the money as you leave the store.

plastic is made of oil