When Canada introduced its one dollar coin some dozen or more years ago the
Government ordered the banks to accept one dollar bills, but to pay out
only one dollar coins. The result was that paper dollars vanished from
circulation in a few months. The same procedure a short time later
replaced two dollar paper bills with two dollar coins. The operation was
expected to save money in the long run because coins last so much longer
than paper monmey.
Not only that, but it is far cheaper for vending machines, fareboxes, etc. to accept them, than to have paper money readers -- each of which cost around $300 USD. And forget entirely about giving back paper money in change from a machine!
Carleton
