According to the GAO, replacing dollar bills with coins could cost billions of dollars: NPR

Who said that a dollar does not go as far as before?

When it comes to dollar bills, a new report from the federal government indicates that their lifespan is more than twice that of the beginning of the decade.

And that calls into question an old debate about replacing the dollar bill with a dollar coin.

Analysts have long argued that the federal government could save money by making this substitution, because even if parts cost more in parts, they last much longer than paper money. In 2011, the Government Accountability Office estimated savings at $ 5.5 billion over 30 years.

But a second GAO look reverses the argument of the play. Analysts now say the government would lose between $ 611 million and $ 2.6 billion over 30 years by phasing out the dollar bill. The economic situation has changed because the dollar bills last longer.

"When we last examined the issue in 2011, the paper dollar lasted only a little over three years," said John Shumann, Deputy Director of GAO. "When we looked at this issue again this year, we found that the paper dollar has now been in existence for almost eight years."

Shumann said it was partly because of changes in the way the Federal Reserve treats banknotes. But it is also a sign that, in a world increasingly without money, paper dollars are not moving as before.

"They often show less signs of wear," Shumann said.

As part of its research, the GAO has investigated many industries that may be participating in the paper-to-coin competition, and has found that most do not readily approve of moving to the dollar coins.

Even the Coin Laundry Association.

"You know, it's good on our behalf," said CEO Brian Wallace, whose group represents about 30,000 self-service laundries across the country.

Despite their name, only a few of these companies currently accept dollar coins. Meanwhile, alternative payment options have multiplied.

"You can always pay with a quarter," said Wallace. "But you can also pay with a credit card or add value to a card." Or adopt the Starbucks approach of simply shaking the phone to the washing machine and it all starts.

Other companies associated with long-standing coins have also evolved.

"Once upon a time there were the toll roads, the public transport systems and the post office itself, which were the biggest cash distributors in the country," said Neil Gray, director of government affairs for the United States. Bridge, Tunnel and Turnpike International Association.

Not anymore. Fewer than one in five toll road users today pay in cash.

"As far as possible, all toll road systems have totally eliminated the money," Gray said.

Even slot machines have largely eliminated slot machines.

(An exception is the gum machine industry, which told GAO that it could offer better gums and toys if more people wore dollar coins.)

The new GAO report may discourage congressional efforts to phase out the dollar bill. Be that as it may, dollar coins have been stubbornly unpopular with the public. That's why the Fed has more than a billion unused and warehoused parts.