- Small denomination coins could be phased out below plans being thought to be by way of the UK govt.
- 60% of small coins are used as soon as ahead of being put in piggy banks or thrown away.
- £50 notes could additionally be phased out in plans to take on cash laundering.
LONDON — The UK govt is thinking about phasing out 1p and 2p coins, in addition to £50 notes, in a bid to take on tax evasion, cash laundering and waste.
The Chancellor Philip Hammond has begun consulting the British public about whether or not to section out the denominations over the coming years as a part of a transfer against virtual bills.
The Treasury printed a “call for evidence” on the proposed adjustments on Tuesday, announcing that these days maximum small denomination coins are simplest used as soon as ahead of being put in piggy banks or thrown away.
“Surveys suggest that six in ten 1p and 2p coins are used in a transaction once before they leave the cash cycle,” the report states.
“They are either saved, or in 8% of cases are thrown away.”
The govt may be bearing in mind phasing out £50 notes because of their popular use in cash laundering.
“The £50 note is believed to be rarely used for routine purchases and is instead held as a store of value,” consistent with the Treasury.
“There is also a perception among some that £50 notes are used for money laundering, hidden economy activity, and tax evasion.”