As cash use declines, Royal Mint says it won’t produce anymore 2p or £2 coins for a decade.
THERE are seemingly enough to last for the next 10 years, and as such Royal Mint no plans to produce anymore.
According to National Audit Office, in 2019, cash was used in less than three in 10 transactions. By 2028, experts predict it may only be used in one in 10.
This is in stark contrast to a decade ago when cash was used for six in every 10 transactions.
It’s believed Covid-19 may have accelerated the trend, with NAO data showing the demand for notes and coins fell by 71 per cent from the beginning of March to mid-April.
“The continuing reduction in the use of cash in transactions is putting pressure on the cash system,” said the NAO in a statement.
“Commercial operators have warned of pressures on their business models, which have previously depended on higher cash volumes to maintain the commercial attractiveness of their operations.
“Consumer organisations have raised concerns that reductions in the ability of people to access cash, and increasing costs to business of using cash, if not properly managed, may increase the risk of financial exclusion for sections of society dependent on cash.”
The government body said the elderly and people on lower incomes are the groups who rely on cash the most.
In March, the government unveiled legislation to protect future access to cash, with these groups in mind.
Gareth Davies, the head of the NAO, said: “As society progresses towards the wide use of digital payments, the use of cash in transactions is dwindling,” reports Sky News.
“It may become harder for people to access cash when they need it and those without the means to pay digitally will struggle if cash is not accepted.
“HM Treasury now works more closely with the public bodies in the cash system to achieve the government’s goal of safeguarding access to cash,” he added.
But he said there is a “need for clearer accountability.”
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