We recently reported on the the government’s failed effort to persuade Americans to use dollar coins.
But the coins have found at least one group of fans: Travel enthusiasts who buy thousands of dollar coins with credit cards that award frequent-flier miles for purchases. Once in possession of the coins — shipped to them by the government for free — they can deposit them into their bank accounts and pay off the credit card bills. The result: a free ticket to anywhere.
The problem is that even if so-called “travel hackers” like Liaw put some of the coins in circulation, their purchases from the Mint contribute to a huge and growing buildup of one-dollar coins in Federal Reserve vaults. The mountain of coins is the unintended result of a 2005 act of Congress. The law requires that more and more coins be minted, despite a lack of demand by the public.
Still better than Bit Coins…