When is a Mint not a Mint?

Back in September (see here) I wrote a blogpost about 'old money' - the pounds, shillings and pence system - that we had when I was a young lad. We've since seen a revolution in our currency with decimalisation, the loss of the half pence coin, and the introduction of the £1 and £2 coins and plastic notes to replace paper. 

However, a quieter revolution has been going on beneath the surface in the past decade - the replacement of physical cash with cards and app-based payment systems. 

Who carries cash any more? 

Very few of us it seesm. 

And that raises issues for the Royal Mint. And, of course for coin collectors. 

I recently read that, in March 2020, the Mint had 26 times more £2 coins than it needed and eight times too many two pence pieces. That excess amounted to £89 million ... so there would be no need to mint any more £2 coins for a decade. I also read that, between 2008 and 2019, there was a 59% decline in the volume of cash payments. This was predicted to reach 65% by 2028. However, the Covid lockdown and people's fears about contaminated coinage have accelerated a change in consumer habits. In 2011 six out of every 10 transactions were cash. During 2021, that dropped to less than three in 10. It's now suggested that the figure will drop to less than 1% by 2028. Physical cash, it seems, is doomed. 

So what does that mean for the future of the Royal Mint - the world's oldest company (created in 886CE)?

They will, I'm sure, continue to produce commemorative coins - they already produce many strikes that are never intended to go into general circulation. But they are looking to a future where coins are no longer being used as currency and are, therefore, developing new areas of business.

One such area is removing and recovering precious metals from disused or obsolete technology. The UK produces 90-100 tonnes of e-waste every year and the Mint has developed techniques that can extract gold of 99.9% purity. They're also employing jewellers to design bespoke items for sale. Royal Mint will eventually become a brand.

The companies that adapt will survive change. The ones that stick to their guns will stagnate and die. It seems like the Royal Mint will be around for a while longer yet. They will certainly outlive coins anyway.

But a big part of me will be sad to see the demise of the reliable physical coin.

A pound coin doesn't stop working when the internet crashes.