Coin Shortage 2020, Learn How Vending Operators Can Avoid Losing Business  

Coin Shortage NewsIt doesn’t matter where you are located in the United States, you most likely will have heard the words ‘coin shortage’ by now because just about every city in the country is feeling the effects of the coin shortage in some way. 

What Caused The Coin Shortage? 

Coronavirus certainly has played a part because more people than ever before have switched to using cashless payments to avoid contact with coins or cash. 

Another reason for the coin shortage is that the U.S. Mint greatly reduced its production of coins after developing safety measures to protect employees in the U.S. Mint from Coronavirus. 

Besides Coronavirus and low production of coins, another reason why we have a coin shortage is that coins just are not in circulation right now like they were last year.  

When you have more people paying for items via credit card or their preferred digital payment method, it’s easy to see why the coin shortage has spread across the United States. 

Will The Coin Shortage End In 2020? 

As of August 2020, the U.S. Mint has resumed full coin production and they expect to have 19.8 billion more coins in circulation by the end of this year. We will likely see an end to the coin shortage in 2020 unless there is a second wave of Coronavirus that forces the U.S. Mint to slow down production again. 

Does the coin shortage mean that the United States is on the way to becoming a ‘cashless society’?  

The answer to this question is yes and no. Yes, more people than ever before are comfortable with cashless payment methods but there is still a large percentage of the population in the United States that prefers to pay with cash and coins. 

Is The U.S. Mint Going To Stop Producing Coins?  

It’s unlikely that the U.S. Mint will discontinue producing or circulating coins anytime soon but that doesn’t mean that vending operators shouldn’t wait for things to go back to normal.  

To continue growing their businesses during the coin shortage, vending operators should invest in cashless payment technology since this will give consumers multiple ways to pay for food and beverages instead of the vending owner only being able to accept cash or coins. 

Federal Reserve Chairman Jerome Powell explained that coins aren’t flowing through the economy as they normally do: “The whole system has kind of come to a stop,” he explained to the public last month. The Fed created an actual task force to correct the coin supply as fast as they can; this group is expected to announce new initiatives in August, but the Mint hopes that Americans will cough up any spare change they may have laying around first.

Some banks may actually be buying back coins in an attempt to restore their own vaults, which can then be redistributed to local businesses in the area. Read on for more info on how you might be able to turn your spare change into serious cash. Be sure to check with your local bank!

 By Jeremy Raglin, Editor-Content Writer

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