1-Dollar Coin: Reintroduction Could Save Millions If It Replaced the 1-Dollar Note

GAO discussed the proposed reintroduction of the 1-dollar coin. GAO noted that: (1) the federal government could save an average of $395 million annually by substituting the 1-dollar note with a 1-dollar coin; (2) the $395 million estimate reflects average annual savings over 30 years; (3) there would be negative savings in the first year of production totalling $23 million primarily due to the Bureau of the Mint's start-up costs; (4) the introduction of the Susan B. Anthony 1-dollar coin did not gain wide public acceptance because the 1-dollar note remained in circulation and the 1-dollar coin too closely resembled the quarter; (5) successful conversion to the 1-dollar coin depends on the elimination of the 1-dollar note, a reasonable transition period, coin design, adequate public awareness of the new coin, and administration and congressional support; (6) major Western economies all use a coin for monetary transactions to save currency production costs; and (7) although these countries faced initial public resistance to this currency change, the public accepted the coins after the elimination of the dollar note.