Comment Panama has already minted $1 USD coins (Score 1) 943
A little background first: Panama uses the US Dollar but calls it the "Balboa". 1 Balboa = 1 Dollar and they look exactly the same because they are actually US dollar bills. Doing this has given Panama an economic stability unheard of in Latin America and contributes to the consistent annual 9% economic growth that the country enjoys, all while keeping inflation low.
A couple of years ago, Panama started to mint their own $1 coins. See here: http://www.thepanamanews.com/pn/v_17/issue_02/economy_12.html. Now granted, they can't be used outside Panama and were actually minted in Canada, but the "Martinellis" as the Panamanians call the coins, named after the president, have some significant advantages over dollar bills:
- In a country where dollar bills do not get replaced frequently and are usually filthy, Martinellis are clean and durable.
- $1 in Panama can get a lot done for you: groceries bagged and carried to your car, a parking space from a "bien cuidado", and two of them will get you a taxi ride in the city. So dropping one or two coins is a convenient way to pay.
- Martinellis represent money that stays inside Panama and can only be used to pay for goods in Panama, thus reducing capital outflow (but of course, not by much as there aren't that many in circulation)
However, this money is minted independently of the US, so it actually represents Panama's own currency. I'm not sure if this is good or bad though.