Enjoy the nickel while you still have it, Canada. Because its days could soon be numbered.
A new report from Quebec-based credit union Desjardins predicts the beaver-bearing coin will be phased out in the next five years.
“Due to the gradual increase in the cost of living and decreased buying power of small coins, the time will come when the nickel will have to be taken out of circulation,” the report reads. “In keeping with our 2008 conclusions, we can already start planning for this change, so as to see it materialize within about five years.”
Nixing the nickel wouldn’t be the only major change to come to Canada’s currency though, according to Desjardins. The credit union predicts that if the government were to make the dime Canada’s new base currency by 2021, it would also lead to a withdraw of the quarter in favour of 20¢ and 50¢ pieces.
While it might seem early to cut the nickel from circulation given the penny was only phased out in 2012, these predictions fall in line with Bank of Canada data that found Canadians are using cash less and less each year. In 2013, cash was only used in about 43.9 per cent of all transactions, down from 53.6 per cent in 2009.
That said, Desjardins stopped short of saying Canada was going to go cashless anytime soon, calling the move “ill advised”.
“As we mentioned earlier, cash is more used by the elderly, those with low incomes, and those with lower education levels,” the report reads.
So for now, it looks like cash still has its purpose.
Now if only we had a nickel for every time someone said that…