The UK government is currently considering phasing out some lesser-used denominations of currency, such as 1p and 2p coins, as well as £50 notes.
Studies suggest that most people don’t use 1p and 2p coins. In fact, 6 out of 10 of the coins are only used once before either being saved in piggy banks or (in 8% of cases) thrown in the bin. £50 notes, meanwhile, are often used for money laundering. “The £50 note is believed to be rarely used for routine purchases and is instead held as a store of value,” said the Treasury. “There is also a perception among some that £50 notes are used for money laundering, hidden economy activity, and tax evasion.”
The Chancellor Philip Hammond will now consult the public as to whether these denominations should be phased out over the coming years.
Source : cambridge-news.co.uk