One cent coins before the end? Cash is finally getting easier!

One cent coins before the end? Cash is finally getting easier!

In Germany there is a groundbreaking proposal to abolish one and two cent coins! The Bundesbank wants cash payments to be rounded up or down to the nearest five euro cents. According to the Bundesbank, the production, packaging and transport costs for these small coins are simply too high. “If we stopped circulating one- and two-cent coins, cash would become more attractive for users,” explains Burkhard Balz, CEO of the Bundesbank. This initiative could be pushed forward at the latest through the “National Cash Forum”, which Balz launched in February 2024.

Make cash more efficient

The forum aims to secure cash as a means of payment while optimizing cash handling. Under the proposals, some EU countries that already implement similar systems could follow the German model, such as Finland, where cash payments must by law be rounded to the nearest five cent amount. Surveys show that many people do not have much love for the small coins and, according to Eurobarometer, most are in favor of abolishing them. Many such cent coins end up in piggy banks or are simply lost, which further questions their use. He reported more on this MIRROR.

The Bundesbank's initiative shows that there are increasing efforts to modernize cash transactions. This is an important issue for retailers, banks, cash transport companies and consumer advocates, as they are all represented on the National Cash Forum. The standardization of rounding rules within Europe could be a step towards relieving the burden on users and saving resources.