Proposal: One dollar bill to be withdrawn off the market
One dollar bill replacement expected to save the U.S. budget
According to USA Today, the one dollar banknote could be replaced with coins, and that’s because earlier this month, the board committee submitted a formal proposal to the Treasury in respect to this problem. Although for short term the 1 dollar bill dissapearance entails additional costs, however for a long period the replacement could bring benefits, in the next 30 years being estimated to be saved up to $5.6 billion.
Furthermore the lifetime of a banknote is about 42 months (officially), while a coin can resist on the market a much longer period. However, the transition from paper money to metal coins does not assure that people will use them. Approximately $1,1 billion coins are thought of not being used by the Americans.
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Giving up one dollar bill for coins would require four years of transition. Beside that, there are needed a few more years for this change to make a difference.
Contrary to expectations, the debate is not new. In 1986, former senator of Arizona, Jim Kolbe, began a campaign to introduce the one dollar coin. The proposal still lingers in Congress.