The problem without mobile payments– there are not enough COINS in the USA

Under the COVID-19, In addition to being out of stock of face masks and toilet paper in the United States, there was also a shortage of American COINS.

According to previous media reports, there is a shortage of US quarters, dimes, nickels and pennies.

The reason is that due to the COVID-19 outbreak, due to the increase of online shopping at home and the disruption of supply chain, the number of COINS entering the public circulation is decreasing, and the US financial system is facing the challenge of coin shortage in Banks.

As COVID-19 spreads across the United States, more And more Americans are separating their homes and using online payment platforms or credit cards for online shopping, the report said. As a result, due to supply chain disruption and other aspects, fewer and fewer coins are entering public circulation and the real economy has been severely affected, leading to a decline in the ratio of real cash and coin transactions. The U.S. financial system faces the challenge of a shortage of bank COINS.

It is reported that the current mainstream payment method in the United States is to wipe cards and cash, not as convenient as China’s mobile payment.

Retailers are the biggest demand for coins. The economy is gradually picking up again and demand for coins has risen sharply, but supply has run into bottlenecks. Store cash register just to find change outdoors, can not be fully recycled, more and less, the problem comes.

Reason for the lack of coins: The chain of coin production and the normal circulation pattern of the coins are disturbed.

In addition, the supply chain into which COINS normally flow was interrupted during the outbreak. Banks and businesses have closed or changed the way they do business, leaving fewer COINS in circulation.

Federal Reserve Chairman Colin Powell said On June 17 that the Central bank was looking for a way out as coin circulation stagnated due to a nationwide economic shutdown.

To alleviate the coin shortage, the Federal Reserve began a strategic allocation of coin stocks to distribute COINS equally between Banks and credit agencies. These measures include the placement of order restrictions on the historical order volume of these coins and the number of coins currently produced by the US mint.

While a growing number of people rely on credit cards or smartphone apps for many transactions today, the coin crunch is a reminder that sometimes you just need change.

While more and more people rely on credit CARDS or smartphone apps for transactions, the coin crunch is a reminder that sometimes you still need small change.