Removing 1-,2-, and 5-eurocents will reduce logistics of extent that will sink the largest ocean freight ship in the world and would save the Eurozone over $36 million
As of June 2010, with more than €800 billion in circulation, the euro is the currency with the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar.
Removal of three out of 8 coins that’s a simplification of 37.5% in cash transactions!!! It will also remove the need to count move and store 165 million tons of coins which take space of 32,000 m3. To put this into a better perspective it is more than the largest ship in the world is capable of carrying.
Loading all the 1, 2, and 5- cent coins would sink the largest ship in the world (Emma-Maersk) [Capacity of 156.9 million tons].
Suggestions For the Local Governments
Remove those 1, 2, and 5 cents from retail and governments should achieve one of the simplest quick-wins. There are number of reasons for doing so starting from:
- There is virtually no specific product people can buy for the price below 10 cents. And even if there was, they could easily pack in bulk (i.e. 3 pieces for 10 cents)
- It will SIGNIFICANTLY reduce cash logistics transportation, storage and personnel costs
- It will be a green solution (save on cash transportation fuel and storage logistics – extra space, extra energy and extra fuel)
- It will improve the quality of people’s lives (ask the cash register operators at the end of their shifts how much time it will save them)
- It will contribute to working more on productive activities rather the non-productive counting of small cents (ask the cash register operators how much time it would save per transactions if they don’t have to deal with ones, two, and five- cent coins)
- It will make things simpler.
- Reduced space for error by 1 digit
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It doesn’t require Einstein’s brain to understand that it requires counting the coins (lost people’s time), packing the coins (lost people’s time and material with some waste produced), transporting the coins (lost people’s time, material, energy, with some extra waste produced), storing the coins (lost people’s time, material, energy with some extra waste produced). If economies want to save, this is a very simple way to do so.
Suggestions for the Eurozone bodies
ECENTER suggests to remove the 2-euro coins and change 1-euro coin for a bank note. The reasons behind these suggestions are simple. 84 mil. tons of coins would be changed for 0.01 million tons of bank notes which will require significantly less storage space, transportation costs and would actually foster transactions at a smaller scale.
Weight & Logistics – it’s easier and more convenient to carry ten 1-dollar bills than three one–Euro coins. It applies even more significantly when considering logistics between banks (or other financial institutions) and outlets (or wholesale/retail operations).
Facilitates smaller services industry – it is easier to tip with a bank note than with a coin. It feels awkward to give a coin as a tip or as a special value for provided service; therefore sometimes people rather not ask for the service to be done, because 5 Euro is too much to give and 1 coin seems too small.Sure, coins have significantly longer durability than bank notes and may be easier to recycle. Though, it is a payment tool and not a bottle and for its use it’s much better as a note than coin.
The Nederlandsche Bank calculated it would save $36 million a year by not using the smaller coins. Other countries such as Germany favoured retaining the coins due to retailers’ desire for €1.99 prices, which appear more attractive to the consumer than a €2 price (Psychological pricing). According to a Eurobarometer survey of EU citizens, Germans are most skeptical about the removal of the coin (only 32% support it), however across the entire Eurozone there is a slight majority (52%) for their removal.
Please, remind us – is there anything in the Eurozone’s regulations that countries should follow the idea of more conservative Germany rather than the one of majority?