Paper dollars easy to stuff in my pocket and not look like there's a pickle on board. The public will reject the coin only option simply because of that convenience factor.

Most countries have coins and they aren't particularly inconvenient. canada even has $2 coins.

Great post!

I would rather have a cion than paper money bacsue you can wash coins. Paper money is dirty, someone once did a study and found that every paper bill has some traces of drugs on it from being the hands of the person buying the drugs,

How does (and to what extent) the extra weight affect the equation?

I see three problems with this study. First, as noted above, it does not take into account the public's willingness to use these coins. I'm an American who has recently moved to Europe, and I can't stand the Euro coins; I find myself not carrying coins (and I now have a huge jar of them). The convenience factor is a big one for most people.

Second, the study does not take into account the cost of converting vending machines to using dollar coins. Because of the limited usage of dollar coins, many machines don't take dollar coins. Many newer ones do, but do we really need to be throwing out thousands of machines to accommodate a new coin?

Third, the conclusion that the $2 bill has a longer life span is a bit of a red herring. It only has a longer life span because no one uses it. If the $1 bill were to go out of circulation, there would be an increase in the usage of the $2, and the same problem would exist.

It seems to me that a better recycling program of the $1 bill would be a better solution than mandating the $1 coin. The US economy, infrastructure, and people are all dependent on it; the cost of reform is too high.

Although I love the recyclability of coins vs. paper I don't believe all the factors have been considered.

Weight, are important, but how about size?
If a shipment of 10000 one dollar bills or coins has to go to a bank, how much more room would the coins take up? More trips for the armored car?

Also, automated vending machines must be considered. Lots of machines take quarters, and change machines give quarters for dollar BILLS, not coins. Would the elimination of the dollar bill mean we would have to scrap every change machine in the country?

im not sure that our monetary system is an environmental issue worth approaching. there is a danger is meddling with public confidence in the economy and our currency system which could potentially go far beyond the intended goal of simply switching from dollars to coins. our nations history can prove that if you look at the long economic and monetary debates stemming back to andrew jackson and the federal bank. to me currency is sort of an untouchable entity because of peoples preconcieved values and ideals.

What might be better would be to get rid of the penny. That would save a lot of energy and be very convenient. It might require rounding of prices and the display of actual prices(with tax) like in europe, but I guess this is a whole different debate. Or we could all use recycled plastic debit cards.

I'm writing a follow-up to this article for LighterFootstep.com. I have a question I hope a few of you commenters will answer: would you carry a $10 coin? How about a $20 coin?

Thanks.

The convenience argument masks a reflex toward inertia and a refusal to get in step with the rest of the developed world. Here are some other considerations:
1. Coins have an accessibility value for persons with disabilities, especially the blind, as they are more readily discerned and differentiated than bills of the same size.
2. Coins will not destroy the vending industry, they will assist it. First of all, the machines are not going to the dump. The coin-handling mechanisms can easily be swapped out without trashing the entire machine, and the ability to use readily-available dollar coins will allow users to purchase increasingly expensive items from machines (think bus fares, toll booths, and parking meters too). The prospect of never seeing a machine spit out a bill with slight imperfections is itself incentive enough to make the shift.
3. To the extent that using coins makes cash transactions less desirable, it may help move toward virtual currency with credit cards and smart cards, which beats paper currency too.

I'm writing a follow-up to this article for LighterFootstep.com. I have a question I hope a few of you commenters will answer: would you carry a $10 coin? How about a $20 coin?

Thanks.

You missed the biggest issue that the politicians look at.
Do I want to make $.92 every 30 years or $.96 every eighteen months?
Greed wins hands down every time.

I work in an industry that produces vending machine-like devices. As Jay said, the coin acceptor or dispenser mechanisms in these machines can easily be swapped out for a new one. Furthermore, dispensing paper bills is difficult and costly compared to dispensing coins. Dispenser manufacturers typically require crisp, clean, ATM-quality bills to be used; otherwise the dispenser can jam. Given that these dispensers must be refilled often (sometimes daily), that obtaining good quality bills requires a run to the bank, and that the dispensers cost significantly more upfront as well as to operate and maintain, it is easy to see why coins still rule the vending industry.

This article about coinage is a great example of how complex sustainability issues are. While my immediate reaction was "30 years!!", the reality of the situation may warrant a closer look.

How much heavier are dollar coins than dollar bills? How much extra fuel do those coins thus consume in fuel during day-to-day transportation, both for the bank and mint, and in my everyday life? If everyone gained 0.25 lb each, that's a significant net increase for the entire population and its overall fuel consumption.

Likewise, what about the resources consumed in the creation of the notes? Does their environmental impact outweigh the fuel cost of extra coins? What are current and long-term landfill costs?

Perhaps solutions lie outside of the assumed framework of coins and notes. What about electronic currency? What about walking more so that you're not using fuel in the first place, and those coins aren't weighing down our transportation system? Of course, then we have to consider the cost of producing the food you consumed as calories to burn while walking (although I suspect that particular energy expenditure is less than that of your automobile).

Just curious, but has anyone done a study about how far physical currency travels in local neighborhoods? That is, when you get a wad of singles, where do you end up spending them? 1 mile from home, at the corner store, 30 miles away in the city?

I would carry either. Paper money is a pain in the ass, especially when vending.

Dollar coins are not going to become widely used unless the paper dollars are discontinued. The trouble is not so much confidence in the paper instead of the metal, but what businesses dispense. As long as they are giving out paper, that is the main form of currency that I will be using as well.

In New Zealand the lowest denomination note is $5.

Also, all coins in denominations less than $1 were recently replaced with different sized versions, and a 5 cent coin was taken out of circulation.

Vending machines were upgraded. People got used to it. No big deal.

It's been my experience that countries - and people - can adapt to new currencies.
Canada introduced the Loony (1$) and Two-ny(2$) when I was a teenager, and eventhough they sounded silly, they were actually easy to use, and very handy. Paper money, unless you have a wallet- just got scrunched up in a pocket (no wonder they only last 18 months)- a coin was much easier to whip out straight from the pocket. Also coins are easier to find when doing your laundry. Just shake and you hear them. I've washed quite a few bills.

In my 20's, I moved to Denmark. Here we have coins 7 different coins (25øre, 50øre, 1kr, 2kr, 5kr, 10kr, 20kr) - 20kr being the equivalent of around 4$. Cash dispensers only give out paper bills, and cash cards (bank cards you use pay directly with the funds in your account (debit cards?)) are all the rage.

Banks will also take back your coins (they have coin counting receiving machines) you pour them in- the machine counts them, gives you a receipt, you take that to the teller, and you can either deposit the amount to your account, or walk off with paper.

We have a small jar filled with loose change. I find it's nice to have when we have to run to the corner store for a quick liter of milk, or weekend ice creams for the kids, etc. You'd be surprised how much you can save up in such a jar!
I used to use an old coffee tin- that could hold up to a few hundred dollars worth of coins.

Our follow-up on LighterFootstep.com to this conversation is here:

http://lighterfootstep.com/why-the-dollar-coin-isnt-all-that-green.html

Greenwashing the Dollar: Why a "green" dollar coin isn't all that green

Comments welcome. :-)

Did the Coin Designers consider the impact of leaving off "In God We Trust".

What impact will it have?

Are there people who will not accept it and will prefer the $1 bill over the coin due to it not being on the coin?

Bring on the dollar coin !! I have to admit, I hate the dollar coins - they look terrible, they age terribly, and they do not do justice to the coins of yesteryear. But since the world isn't going to change the price of silver and gold any time soon, it's all we've got. And the truth is, it's a lot better than the ratty, crumpled, written on, stained dollar bills I seem to get all the time. I hate dollar bills.

I hate pennies more, but second on my list is dollar bills. My vote is that they get rid of the penny, paste lincoln's face on the dollar (since the biggest deterrent to getting rid of that pathetic unit of money has been those who love Lincoln), and acknowledge that when coins made sense (not cents!) inflation was like, uh, I don't even want to quote how many times lower (because it won't be as dramatic if I say that).

In short; get rid of the cent, get rid of the dollar bill. Make a $5 bill the lowest bill, and 5 "dollar coins" for a bill. 4 Quarters for a dollar. And leave nickels and dimes for a few more years. But eventually, get rid of nickels too, and have dimes be the lowest unit, and quarters, 50 cent pieces and dollar coins become widespread.

Yea, you gotta change vending machines. Yea, you gotta deal with the cost of "all those banks transporting dollars", but the truth is, what is a dollar worth now? When I was a kid, if I found a quarter on the street, it was like payday, it was like halloween at the corner drug store; oh the candy I could feast on for a quarter!! Those days are gone. Now, a quarter isn't even half the cost of most candy bars. I mean, candy bars in the 60s could be had for 5 or 10 cents. Today? 80 cents? Two for $1 if you're lucky? Let's get the coinage to reflect that fact.

I, for one, love the "cartoon president dollars" ;) I can't believe I just said that, actually, I take that back, haha. But in the name of improving our coinage, our economy, and me not having to have jars and ash trays FULL of pennies, nickels, and dimes that I'll NEVER use except to wad up and take to the bank, I want to start using dollar coins ! Trickle effect for a better world ! Yea ! And stuff !

DOES ANYONE USE THE PRESIDENTIAL DOLLAR COINS?

Hi there, I make a couple of purchases everyday in Canada where we have $1 and $2 which is great as you can buy lunch with your pocket change.

I carry my coins with the help of a little change-holder called Portsou that I picked up online.

Check it out www.portsou.com