The State Duma proposed to abandon metal rubles. It is more expensive to make them than paper ones – the cost of minting one coin is much higher than its face value. In the Central Bank, however.
they want to print more “trifles” – they are still in use, but they end up in piggy banks, and there is not enough of them. Do we need metallic money, what place do they occupy in cash payments and does it make sense to refuse them, Investee found out.
Cashless trend
Cash payments are gradually but steadily becoming exotic.
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Nevertheless, “cash” still has not been canceled. Moreover, they plan to print more small money. In
At the same time, according to the regulator, the Russians are 1.5 times more provided with coins than the Europeans. In 2020 alone, the money supply in Russia was replenished with 1 billion new coins.
i.e. in terms of each inhabitant, nine coins were issued. In total, there are about 70 billion coins in circulation in the amount of 113 billion rubles. Since 2018, the Bank of Russia has stopped issuing coins of kopeck denominations: 1, 5, 10 and 50 kopecks.
“10 kopeck coins are in the lead, although no one pays with them anymore, followed by coins with a denomination of 1 ruble. Citizens in their hands in piggy banks most often leave 10-, 5-ruble coins. Receiving them for change.
their further wearing is difficult. So, in a liter jar, you can accumulate coins for about 7 thousand rubles. And retail chains are completely reluctant to accept payment in coins, ”says Maya Dubrovnik, professor at the Department of Economic Theory at the Russian University of Economics. G.V. Plekhanov.
Gets up in the kopeck
On the one hand, the printing of new money seems logical: the lion’s share of cash payments in Russia falls on banknotes of small denominations. Digital payments help with larger purchases.
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But as for the “iron” trivia, there are proposals to refuse it all the same. Therefore, it is necessary to replace metal money with paper money – it is cheaper to produce them.
“Coins use valuable and non-ferrous metals, so the cost of minting a coin in comparison with the face value sharply exceeds the latter: 1 kopeck – 450% of the face value, 1 ruble – 60%, 2 rubles – 45%, 5 rubles – 20%. It is necessary to take into account the transportation of coins, payment of collectors, and so on,” explains Maya Dubrovnik.
The question of convenience also matters: a trifle takes up a certain weight and volume in wallets, plus it takes time to search for coins when paying for goods. Finally, it is unhygienic – metal money has always been considered a carrier of infections, which is important to keep in mind in the context of the coronavirus pandemic, which, by the way, also applies to paper money, notes Dmitry Palov, chairman of the St. Petersburg regional organization Delovaya Rosia.
Not so fast
However, it is too early to talk about the complete and imminent rejection of “iron” money. They are often used for small payments, charitable purposes, payment at vending machines.
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“It is unlikely that it will be possible to abandon metal money in the next five years: there are still many remote villages and towns in Russia, for example.
in Siberia and the Far East, where there are no ATMs and shops do not use any means for online payments. If we go for a quick cessation of the use of metallic money, rural residents will have difficulty paying for food and household goods, ”notes economist Leonid Khazanov.
At the same time, the use of metallic money is applicable only at non-round prices for goods or services. Otherwise, the rejection of them can cost a pretty penny.
“One of the consequences is a possible increase in the cost of goods and services, rounded up. The obvious consequence of rising prices will be an acceleration of inflation, an increase in the cost of the consumer basket and the cost of living. There are many risk areas in the Russian economy that could be affected by the withdrawal of metallic money from circulation,” points out Grigori Pakhomov, strategic development consultant at the Capital of the Regions CPC.
Digital transition
Another thing is that, despite the objective difficulties, the digital transition will still take place. Ultimately, although not in the short term, not only metal money, but also paper notes will disappear from circulation.
Now paper notes and coins provide a transitional period while the use of cashless payments and cryptocurrencies expands. At some point, the world will begin to massively use digital money, they do not require the cost of issuing and servicing the money supply, they can be easily controlled, ”says Anton Primakov, Executive Director of Slick Jump.
The Central Bank has already decided on the format for introducing the digital ruble as a new form of money. It is assumed that this will be the third form of currency along with cash and non-cash money, which are stored in bank accounts.
The regulator itself plans to issue a new type of ruble, and it will be stored in the form of a digital code in the electronic wallet of the Central Bank. At the same time, commercial credit organizations will open wallets and conduct financial transactions with electronic money. Clients will have access to a single digital wallet based on the Central Bank through each of the banks in which it is serviced.
