What GAO Found
GAO's analysis found that replacing the $1 note with a $1 coin would likely result in a net loss to the government over 30 years. GAO found the governmentwould incur a loss of about $611 million if notes were actively replaced and about $2.6 billion if $1 notes were replaced gradually (see figure). Thesesimulations represent the first time GAO has found that replacing the $1 note with a $1 coin would result in a net loss to the government rather than a netbenefit. GAO's estimates are based on current data and economic projections, which have changed over time. For example, the lifespan of the $1 note has morethan doubled since a 2011 GAO analysis, from 3.3 years to 7.9 years, largely due to changes in note processing technology. Stakeholders generally identifiedfew benefits from replacing $1 notes with $1 coins. Seven of 10 stakeholders GAO met with said that replacing the $1 note with a $1 coin would result inadditional costs. For example, armored carriers told GAO that their transportation costs would increase because coins weigh more than notes.

Why GAO Did This Study
The U.S. spent about $1.3 billion in 2017 to produce, process, and circulate coins and paper notes for use in the economy. Since 2006, both the penny andnickel have cost more to make than their face value. Other countries have replaced notes with coins of the same value to reduce costs. Since 1990, GAO hadestimated replacing the $1 note with a $1 coin would provide a benefit to the federal government.

GAO was asked to examine the potential cost savings to the government from making changes to currency. This report (1) estimates the net benefit to thegovernment, if any, of replacing the $1 note with a $1 coin and selected stakeholders' views on this change; and (2) examines what is known about potentialcost savings from suspending penny production and changing the metal composition of the nickel, and selected stakeholders' views on these changes. GAOconducted economic simulations of continued use of $1 notes and replacing notes with $1 coins, examined cost data from the U.S. Mint, and interviewed officialsfrom the Federal Reserve, U.S. Mint and Bureau of Engraving and Printing as well as 10 selected stakeholders representing industries that could potentially beaffected by currency changes.

What GAO Recommends
Congress should consider taking steps to authorize the Secretary of the Treasury to adjust the metal content of circulating coins.

To read the complete article, see:
Financial Benefit of Switching to a $1 Coin Is Unlikely, but Changing Coin Metal Content Could Result inCost Savings (https://www.gao.gov/assets/700/697778.pdf)

These simulations represent the first time GAO has found that replacing the $1 note with a $1 coin would result in a net loss to the governmentrather than a net benefit.

GAO said that while it has found in the past that use of a coin would save money, times have changed. The difference today is largely due to the longer lifespan of dollar bills that didn't used to exist:

The Federal Reserve has improved its process of producing dollar bills which makes them last longer and also results in having to produce fewer of themwhich ultimately lowers costs.

To read the complete article, see:
Would Replacing the Dollar Bill with a Coin Save the GovernmentMoney? (https://www.fedsmith.com/2019/03/30/replacing-dollar-bill-coin-save-government-money/)