Monday, 19 September 2016

1p is facing an axe

1p

It could be the end of 1p coin, Bank of England governor Mark Carney has suggested.

The value of the coin is rapidly decreasing (especially post-Brexit, ahem), and we may end up following Canada's example and ditching them altogether.

Carney, who oversaw the withdrawal of the 1p coin while governor of the Bank of Canada, was appearing on a BBC show when some school children asked him why pennies were still around.

'That's a question for the royal mint because we produce the bank notes,' he said. 'I will say that in a number of other countries, because the penny isn't used very frequently – and to be honest, I rarely see them myself – they have done away with the penny, so in Canada, New Zealand and Australia, they've done away with the penny or the equivalent.

'What they did in each of those cases is they gave people the opportunity to donate the existing pennies to charity as a transition, and it was very successful. But it's a decision for other people and they're still very much legal tender and can be used to buy things.'

Then, when asked if he thought getting rid of the penny would be a good idea, he answered: 'At some point.'

We've used pennies since the eighth century, and the first copper penny coin was struck at the Soho Mint in Birmingham in 1797, when George III was king.

Since 1992, the coins have been minted from copper-plated steel.

Despite them rarely being actually used, it's estimated there are around 11.2billion of them in the UK.


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