Mint is Not Ending Paper Money
The Claim
The U.S. Mint has stopped producing coins, therefore beginning the process to stop using paper money.
News posted on
Emerging story
In early July 2020 Facebook users began to spread a conspiracy theory that the current coin shortage meant the end of a cashless society.
The claim was quickly picked up by other social media users.
Misbar’s Analysis
Misbar's investigation shows that a national coin shortage has taken place over summer 2020 due to COVID-19. However, this does not mean that there is a plan to end coin production or that the mint plans to discontinue producing paper money.
News outlets reported that COVID-19 has led to a shortage of pocket change. NPR even called coins “the new toilet paper” in terms of pandemic shortages.
Chair of the Federal Reserve Jerome Powell said: “With the partial closure of the economy, the flow of funds through the economy has stopped. We are working with the Mint and the Reserve Banks and as the economy re-opens we are starting to see money move around again.”
In mid-June, the Reserve began sending coins to affected banks across the nation to counter the shortage.
Social distancing through the pandemic means that less Mint employees have been going to work, leading to a reduction in production. This is a consequence of COVID-19 restrictions, though, not part of a plan to stop producing coins and paper money.
