US facing coin shortages amid pandemic
Photo by Rhianna Barrow.
America is facing a national coin shortage. With Covid-19 forcing businesses to introduce new policies and regulations, most convenience stores and restaurants now publicly post signs asking customers to use credit cards or have exact change.
Hermilio Jasso, professor of business administration, said many customers have stopped using paper and coin currency.
“As a result of COVID, many individuals are avoiding using currency and instead using a credit or debit card to pay,” said Jasso.
Jasso added that because of these regulations, businesses are running short on coins.
“What we have is not a shortage of coins, but a shortage of circulation,” said Jasso.
Jasso said the coin shortage will not affect the American economy, impacting people in low-income homes without a credit or debit cards more than anybody else.
According to SouthEast Bank, “Rumors are being shared across Facebook with claims that the U.S. Mint is going to halt coin production and launch a cashless society. While the national coin shortage does mean change is temporarily harder to access, the shortage is not the result of any intentional government action.”
The reason for this coin shortage, according to SouthEast Bank, is not because of the U.S Mint, but because people are keeping their change at home.
According to USA Today, the U.S. Mint also decreased staffing in response to the pandemic. As the nation's businesses have reopened, demand for coins has exceeded the available supply.
“Once people recognize that they can do something good by just taking their extra change to the bank and deposit it there, money will get in circulation a lot quicker,” said Jasso.
Jasso stressed the importance of college students doing their part to help resolve the problem, adding it all starts with putting more currency into circulation.
For more information, visit the Federal Reserve website.
