This debunks another piece of conventional wisdom — that Americans are opposed to eliminating the dollar bill. In fact, opinion polls consistently show that, when informed of the savings of substituting a dollar coin for the dollar bill, two-thirds of Americans support making the switch.
Unfortunately, the dollar coin faces significant obstacles to success, including the Federal Reserve’s clear preference for the dollar bill. I discovered this for myself when the Mint launched the Sacagawea dollar in 2000. The Fed is the channel through which the Mint distributes coins to banks and ultimately businesses and consumers. If the Fed doesn’t order a coin, it doesn’t go out the Mint’s doors.
The deck would appear to be stacked against the dollar coin.
It’s clear that the dollar coin is unlikely to overcome these obstacles unless Congress eliminates the dollar bill. In these difficult economic times, it’s a rare opportunity for the country to save money without raising taxes or cutting programs. Now is the time for Congress to act and finish the job.
Philip N. Diehl was director of the U.S. Mint from 1994 to 2000.
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