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Coin task force offers solutions to boost coin circulation

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October 24, 2022

The U.S. Coin Task Force, formed in 2020 to explore coin circulation challenges, has released a set of solutions to improve coin circulation, according to the task force's website.

The report follows the task force's "State of Coin" paper that examined the causes of the circulation challenge and a solution roadmap for a transparent and efficient coin ecosystem.

The coin ecosystem prior to the pandemic had structural weaknesses. including a low level of transparency, a large unbanked or underbanked population, a fragmented financial services industry and a high percentage of low denomination coins in circulation.

In June 2020, the Federal Reserve imposed allocation limits on coin orders from institutions to allocate the coin supply in an equitable way.

While the supply of recirculated coin declined, demand for coin has persisted due to the continued need for cash transactions at retailers and other venues.

The report identifies four potential solution pillars:
1. Increase transparency into coin inventories and flows across the coin ecosystem.
2. Develop new coin inventory management practices.
3. Shift the mix of denominations produced by the Mint toward higher value coins.
4. Raise consumer awareness and reinforce options for depositing loose coins conveniently.