A Dollar Coin Could Save Millions

Gao ID: T-GGD-95-203 July 13, 1995

The major Western economies all now use a coin for monetary transactions for the same level that Americans use the paper dollar. Although the United States introduced the Susan B. Anthony one-dollar coin in 1979, it was not widely accepted by the public, mainly because the dollar bill was not simultaneously eliminated. GAO reported in 1993 that the government could save $395 million per year on average over 30 years by substituting a one-dollar note. GAO reviewed a recent Federal Reserve study that updated this estimate to $456 million per year, which GAO believes is reasonable. On the basis of the foreign experiences its studies, GAO notes five essential element to ensure a successful conversion: (1) elimination of the one-dollar note; (2) a reasonable transition period; (3) a coin that is well-designed and readily distinguishable from other coins; (4) an adequate public awareness campaign; and (5) sustained administrative and congressional support to withstand negative public reaction.



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