Currency
Posted at 4:49 pm on Friday, February 8, 2008, in Uncategorized, and tagged idea.
When I purchased a burrito yesterday at my second home, I had an awkward transaction because I used a dollar coin. I had to clarify exactly what I was doing. “Here are six singles, this is a dollar coin, and sixty-one cents.” I wish we didn’t need to do that, but there are so few dollar coins out there — I don’t even know where I got mine — we are not accustomed to it. But we should be.
The Euro is a great and neat currency. They have had dollar coins for awhile (and the Canadians too), and they have two-dollar coins, as well. It is nice when you feel the change clinging in your pocket while walking in Europe, because you may have a few bucks worth in there and not only 39 cents.
But the Euro is not the ultimate currency, mainly because they have too many forms. Not only does the Euro offer a penny, the eurocent, but they have a two-cent piece, as well. Why?
Officially, the Euro currency system issues a 1-cent, 2-cent, 5-cent, 10-cent, 20-cent, 50-cent, 1-dollar and 2-dollar coins. That is too many. Compare that to the U.S.: 1-cent, 5-cent, 10-cent, 25-cent and 1-dollar (if you can find one). Also, too many.
And look at the paper currency. In the U.S., we have the 1-dollar, 5-dollar, 10-dollar, 20-dollar, 50-dollar and 100-dollar bills. In Europe, 5-dollar, 10-dollar, 20-dollar, 50-dollar, 100-dollar, 200-dollar and 500-dollar. That is again too many.
In the U.S., and across the pond, there are too many different coins and bills.
It is my opinion there is a certain ratio threshold of lower-value coins to higher-value coins that needs to be exceeded, before you need to add a coin or bill in the middle, and I think that is 4 or 5.
And with that logic, and for my despise of pennies, here is my proposal to update the U.S. currency…
- Eliminate the penny (round up to nearest nickel);
- Eliminate the dime (since two nickels will do, and five nickels will get you to a quarter);
- Eliminate the dollar bill (substitute with dollar coin);
- Eliminate the 10-dollar bill (two 5-dollar bills will do the job, and four 5-dollar bills is easy enough to get to 20 dollars); and
- Eliminate the 50-dollar bill (five twenties is a good ratio for 100 dollars, and we should be eliminating these higher-value notes anyway to cut down on fraud).
In the end, we would have…
- 5-cent coin (nickel);
- 25-cent coin (quarter);
- 1-dollar coin (um, let’s call it a “dollar”);
- 5-dollar bill;
- 20-dollar bill; and
- 100-dollar bill.
That is six pieces, although I would be open to a 2-dollar coin (similar to in Europe and the Toonie in Canada).
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