Laundromats, retailers, and other businesses that depend on coins want Americans empty their piggy bank and to look under the couch cushions for more change and to “get coin moving.”
A group representing individual businesses, including banks, retailers, truck stops and grocery stores, has asked the Treasury Department for additional assistance in convincing Americans to return coins to circulation.
They say that the consequences of the slowdown in circulation will affect those who can’t pay electronically for their goods.
The associations wrote to Treasury that they believe if retailers cannot offer cash for cash purchases, consumers who depend on cash will be at risk.
People who wash their clothes at coin laundry mats may have difficulty finding change. People who don’t have access to cash are unable to shop at certain card-only stores on a larger scale.
It is not a shortage of coins in America, but rather a lack thereof.
Austen Jensen is a senior vice president of government affairs at Retail Industry Leaders Association.
Jensen’s group is working with the American Bankers Association and National Association of Convenience Stores and National Grocers Association to meet consumer demand. They are also seeking a public campaign to increase coin circulation.
Jensen stated that his group encourages member retailers to come up with creative solutions to the coin shortage. This includes rounding up purchases for charity promotions. He also suggested that businesses could send coins to multiple stores.
It is not the first instance of low coin circulation during the pandemic.
The coronavirus caused disruption in consumers’ purchasing habits. They shifted their purchases to plastic cards so much that the Federal Reserve banned financial institutions from ordering coins as of July 2020.
A U.S.. Task Force was also established by the Fed. The Coin Task Force was made up representatives from different federal agencies. This led to a campaign encouraging people to put coins in circulation.
The task force released a State of Coin Report in February. It stated that pandemic lockdowns had slowed small transactions that generate change, and there was a temporary fear of cash due to perceived hygiene reasons. According to the report, the Federal Reserve and U.S. Mint had contracted with third-party consultants to examine the coin supply chain.
The volume of coin deposits began to rise gradually in the summer 2020. However, businesses claim that the problem is back because people are switching to plastic cards and not using coins anymore.
People without bank accounts have suffered the most from this issue. According to the Federal Reserve, an estimated 22 per cent Americans were either “underbanked or unbanked” in 2019.
The Treasury Department has not yet responded to the letter. The government urges citizens to use their coins to move the economy. This includes taking them to their banks or credit unions and spending them with retailers.
