What is the future of coins?
Traditionally, every Coin Convention begins with a lecture by Astrid Mitchell. It is eagerly anticipated, as she summarises all the latest developments in the coin industry in plain language and without sugar-coating the facts. Astrid Mitchell had long ago described how competition between far too many state-run mints that strike the ever-dwindling number of circulation coins would lead to a cut-throat battle. This has indeed taken place in recent years. Many mints have fallen victim to it. At the start of the conference, many wondered how this decline in mints would affect cash production?
A return to cash
Whilst just a few years ago it looked as though cash was in complete retreat, a number of countries have taken steps over the last two years to ensure that this does not happen. This is important because banks and credit card companies not only have a vested interest in profiting from payment transactions, but also have an almost unlimited advertising budget. With this, they have convinced consumers not to use free cash, but – for a quite small fee – to use credit cards, which incur charges. Yet the economic interests of the private sector are becoming increasingly dangerous. Hacker attacks, wars and natural disasters highlight the importance of cash, particularly in times of crisis. Furthermore, there is a growing global awareness that private companies have no interest in offering their services to economically unattractive groups. Many are thus excluded from the fine new cashless world.
That is why more and more legislators are stepping in to ensure that cash remains part of the payment system. Sweden – yes, of all countries, the biggest European champion of the cashless society – has passed a law forcing every Swedish business to accept cash. Australia, China and the USA have done the same – to name but a few. Other countries have even enshrined cash in their constitutions, or are planning to do so. It seems that recent years have prompted a shift in thinking amongst legislators and central banks, with the realisation that cash makes a nation more resilient in the event of a crisis.
Whilst the amount of cash in circulation is increasing in terms of its face value – with the exception of Asia, where this increase is greater in coins than in banknotes – fewer new coins are struck worldwide. Between 2014 and 2024, it has fallen from more than 45 billion to fewer than 15 billion pieces – a decline of more than two-thirds. This is primarily due to the smallest denominations, which are disappearing in an increasing number of economies. This makes sense. They are expensive to produce – in most cases, the state loses money on them. Furthermore, they are used for only a few transactions, because many customers in shops are too lazy to rummage for change, so small-denomination coins end up in piggy banks or are quite simply thrown away. At the same time, central banks are reluctant to replace the lowest-denomination banknotes with coins. One wonders whether the banknote industry has a very effective lobby, or whether staff at central banks simply cannot do their sums. After all, a coin is considerably cheaper for the taxpayer than a banknote. Whilst coins are struck at a higher cost, they remain in circulation for much longer, meaning that the production costs are more than recouped.
Incidentally, due to the high costs of raw materials, energy and transport, it has now become considerably more expensive for governments to have coins produced. At the same time, the dwindling number of suppliers have hardly any spare capacity left.
They are no longer prepared to make concessions on price in order to secure an order. And that means that coin production has become more expensive for everyone, especially for those who no longer have a state-run mint. To address this, these countries will need to plan very carefully in future to order their coins in good time, so as to avoid any shortages.
What other issues are on the community’s mind?
The future of cash is the most important issue for the community of central banks and mints. This topic was addressed not only by Astrid Mitchell, but also by Marc Schwartz, Chairman and CEO of the Monnaie de Paris, and Claus Fischer from the Austrian Mint. This mint, so well known for its commemorative and bullion coins, has become a key advocate for cash. Furthermore, Francisco Mandiola illustrated the processes behind the scenes, using Latin America and the Caribbean as examples. He also highlighted how important cash is, particularly in countries where the informal economy plays a crucial role.
Sustainability is also becoming an increasingly important issue in coinage, whilst the problem of forecasting and logistics relating to cash demand appears to have been resolved. This issue, which used to be so important, has almost disappeared from the agenda.
Commemorative coins, on the other hand, are becoming a key topic. This is because many mints use them to ensure they move into the black and thus secure their raison d’être. During the Coin Conference in Budapest, specific examples were presented, along with new techniques and – last but not least – the possibilities and limitations of AI when it comes to developing designs.
Collaboration with CoinsWeekly for a workshop on commemorative coins
Just how important the minting of commemorative coins has become for the community is demonstrated by the fact that, since 2024, a highly successful workshop on this topic has been held in collaboration with CoinsWeekly as part of the Coin Conference. Whilst the first workshop was devoted exclusively to themes and designs, the second issue focused on marketing issues.
Ursula Kampmann and Falk Liebnitzky from CIT in Liechtenstein presented the advantages and disadvantages of B2B and B2C, as well as the various distribution channels. At the heart of every workshop is group work, during which participants benefit from sharing their experiences with one another.
Target audience of the Coin Conference
Organised by the Reconnaissance Group, the Coin Conference is aimed exclusively at a specialist audience. This year, almost 160 delegates from 87 organisations across 36 countries attended. This truly reflects the international nature of the numismatic world! You can view further photographic highlights from the convention on the Coin Conference website.
Reconnaissance not only organises the Coin Conference, but also numerous other conferences on topics relating to banknote production and security printing.
by Ursula Kampmann / MünzenWoche
