As the use of cash declines, The Royal Mint has announced they won’t be producing anymore 2p or £2 coins as there are enough in circulation to last for the next 10 years.
In 2010, cash was used for six in every 10 transactions, but by last year, this statistic had declined to show cash payments made up less than three in every 10 transactions.
National Audit Offices figures have shown that the demand for notes and coins fell by 71% between early March and mid-April, which indicates that Coronavirus has had a direct impact on the acceleration of the decline in cash.
The production of both the 2p and £2 coin has been stopped by The Royal Mint, but stocks of every coin in circulation are exceeding its targets. For example, £2 coins are 26 times over the target.
There hasn’t been a demand for the coins as lots of old ones were returned to circulation after the launch of the 12-sided pound coin in 2017. A six-month window was given to allow people to recover any old round pounds, leaving everyone emptying their money boxes and jars and returning their contents to the bank. Including any old 2p and £2 coins.
Experts have predicted that by 2028, coins and notes may be used for only one in 10 transactions in the UK.
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