Germany is considering the abolition of one and two cent coins in a bid to streamline cash transactions. This initiative, led by the 'National Cash Forum', aims to make cash payments more efficient by rounding payments to the nearest five cents. The forum includes diverse stakeholders such as retail representatives, banking associations, and consumer advocates. Spearheaded by Bundesbank board member Burkhard Balz, the proposal highlights the high costs associated with the production and transport of these small coins.
Countries like Finland, the Netherlands, and Belgium have already adopted similar measures, making cash transactions simpler and more appealing. The move in Germany could align with these existing practices, potentially leading to a unified regulation across Europe. The Federal Ministry of Finance is expected to champion this cause at the European level.
Support for this change appears strong, with a Eurobarometer survey revealing that a majority of Europeans favor the elimination of these small denominations. Consumer advocates and the general public perceive these coins as cumbersome, often ending up unused in personal savings jars.
Despite the proposal's promise, challenges remain. Questions about handling cash register discrepancies and adapting price-tagged goods need addressing. However, the proposal signifies a significant step towards modernizing cash payments in Germany and across Europe. This initiative not only aims to simplify transactions but also to sustain cash as a viable payment method amid the growing trend of digital payments.
