Did Canada Eliminate Coins? Understanding the Future of Canadian Currency

Learn about Canada's coinage changes, including the phasing out of the penny and its effects on commerce.

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Canada has not eliminated all coins, but it did phase out the penny in 2013. This move was initiated to cut costs, as the manufacturing expense exceeded the coin's value. Transactions are now rounded to the nearest five cents for cash payments, simplifying commerce and reducing the burden of handling small change.

FAQs & Answers

  1. Why did Canada phase out the penny? Canada phased out the penny in 2013 to reduce manufacturing costs, as it cost more to produce than the coin's actual value.
  2. What happens to transactions since the penny was discontinued? Transactions are now rounded to the nearest five cents for cash payments, which simplifies commerce and reduces the need for handling small change.
  3. Are there any plans to eliminate other coins in Canada? As of now, Canada has not announced plans to eliminate any other coins besides the penny.
  4. How do Canadians feel about the removal of the penny? Responses vary; some appreciate the simplification it brought to transactions, while others miss the ability to use the penny for precise payments.

Watch More

If you're interested in learning more about Canada's currency evolution and its impact on commerce, check out our related content. We dive deeper into the history of Canadian coins, the implications of phasing out currency, and how other countries are approaching similar changes.

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