Declining Circulation: With tap-to-pay and mobile wallets gaining ground, fewer people carry coins, reducing the nickel’s circulation.
Rising Production Costs: It currently costs more than five cents to make a single nickel. This makes continued production economically inefficient.
Digital Payment Growth: Cash use is down, especially among younger generations who favor digital transactions over physical money.
Collector Interest: Despite falling utility, Jefferson nickels remain popular among collectors, which may preserve demand in niche markets.
Historical Value: Introduced in 1938, the Jefferson nickel has cultural and historical significance that could argue for its preservation.
Economic Transition Lag: While cities may adopt cashless payments quickly, rural areas still rely heavily on physical currency.
Government Policy: Unless Congress intervenes, the U.S. Mint may continue producing nickels regardless of their waning use.
Public Sentiment: Many Americans still feel emotionally attached to coins and paper currency, making sudden removal unlikely.