Overview

• The Bundesbank's 'National Cash Forum' has recommended introducing rounding rules for cash transactions in Germany, eliminating the need for 1- and 2-cent coins.
• The proposal cites high production and environmental costs associated with the small denominations as key reasons for their potential removal.
• If implemented, cash payments would be rounded to the nearest five cents, aligning with practices in countries like Finland, Ireland, and the Netherlands.
• Consumer surveys show mixed opinions, with 53% of Germans supporting the coins' removal, though concerns about price adjustments and cash accessibility remain.
• The initiative aims to make cash handling more efficient while maintaining cash as a widely accepted payment method in Germany.