from Wealth Cycles:
In April 2012, The Canadian Mint announced its intention to withdraw pennies from circulation. This means that transactions requiring pennies will be rounded to the nearest 5 cents. This is true, at least, for cash transactions. On the other hand, if the transaction is settled electronically then it will settle as usual. Is this policy the forerunner of other political moves to discourage use of tangible (paper notes and metal coins) currency? Perhaps.
Shortly after the Canadian Mint made this announcement they also announced their intent to create a digital currency, an initiative they have dubbed “MintChip.”
What exactly is MintChip?
According to an article by Emily Jackson on thestar.com:
Still in the research and development phase, MintChip will ultimately let people pay each other directly using smartphones, USB sticks, computers, tablets and clouds. The digital currency will be anonymous and good for small transactions — just like cash, the Mint says.
Not only is MintChip still in the research and development phase, but the Mint has presented a challenge to software developers:
The Royal Canadian Mint MintChip Challenge invites software developers to create innovative digital payment applications using MintChip, a R&D phase technology available only to challenge participants. Developers and the public are also encouraged to share ideas for how a digital currency can be used.