The South African Reserve Bank and the South African Mint undertook a feasibility study on the coin re-circulation recirculation in South Africa. The purpose of the study was to assess feasible and sustainable coin re-circulation solutions that the SARB and stakeholders can drive to increase re-circulation and decrease production costs whilst ensuring public demands requirements are met.
Both the qualitative and quantitative research revealed the following about coin:
It is inconvenient to transact with and there are major barriers or disincentives to using or banking it
It becomes “comatose” amongst the members of the public, often saved in piggy banks for long periods of time; and
Highly elastic, constantly circulating for extended periods of time as it is used for change in payments of goods and services
The study concluded by recommending and validating different approaches to improving the recirculation of coin.