Germany Considers Phasing Out 1- and 2-Cent Coins with Rounding Rules

The Bundesbank proposes rounding cash payments to the nearest five cents to improve efficiency and reduce costs.

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.