Coins play a critical role both in our economy and currency. For so long, it’s purpose has never changed for paying services and goods. The convenience as well as durability of coins can’t is unequaled by paper money as per the Washington Post.
Paper Money is above in almost every Aspect
Yes it is true that paper money is efficient and faster to produce. Likewise, spending and distributing it is the same. Paper bills are made from cotton because this material is likely to last longer and more durable as well compared to simple paper.
Printing and making use of paper money is cheaper in comparison to coins because the materials required are cheaper.
Coins on the other hand are made from metals which may cost a bit more to mint and extract. Yet another notable difference between the two is the fact that paper money is lighter, making it more efficient to carry and ship than coins.
Why we are still Producing Coins?
Even though it seems that paper money is way beyond coins, still the latter is necessary. Coins have longer lifespan and it could be used for decades before its melted and be repurposed for making new coins. Paper currency though can be disintegrated and torn down and thus, can be replaced more often compared to coins. This is why coins will always be part of the currency of an economy.