The Royal Mint has no plans to make new 2p or £2 coins for the next 10 years due to an abundance of them in circulation.
It comes as a new report shows the coins were used in less than three in 10 transactions last year, compared to six in 10 a decade ago.
The National Audit Office (NAO), which carried out the report, said the coronavirus outbreak may have accelerated the trend as customers were encouraged to pay contact-free.
Coin-making has been slashed 65% by The Royal Mint but stocks of every coin in circulation are exceeding its targets. It is now sitting on 26 times more £2 coins than the public need, with excess coins worth around £89million.
A spokeswoman for The Royal Mint said 2p and £2 coin production could return if needed.
However, it said pennies are still in production, with 60million more 1p coins produced this year due to a surge in demand from businesses at the start of the pandemic.
"We constantly monitor the demand for coins from the banks and Post Offices, and seek permission to manufacture more from HM Treasury," a spokeswoman said.
But there are concerns that older and vulnerable households could lose out with bank branch closures and the ongoing funding row over cash machines.
"Cash use might be declining overall but it remains a vital part of millions of people's lives - particularly for some of the most vulnerable in society," said Meg Hiller, who chairs the influential Public Accounts Committee in the House of Commons.
"The government took its eye off the ball and too many people already have to go out of their way to get their hands on cash.
"It and the regulators will have to hurry to catch up with fast-moving technology, or even more people could be left behind."
The NAO said it could not currently see a clear link between the government's aim and which of the various public bodies involved in overseeing the cash network could actually make it happen.
Get the latest money advice, news and help straight to your inbox - sign up at mirror.co.uk/email
Gareth Davies, head of the NAO, said: "The approach is fragmented, and it is not clear that the action being taken will keep up with the pace of change.
"As society progresses towards the wide use of digital payments, the use of cash in transactions is dwindling. It may become harder for people to access cash when they need it and those without the means to pay digitally will struggle if cash is not accepted."
Elsewhere, despite the decline in cash use, a mystery remains over banknotes.
As many as £50billion notes are thought to be missing, according to figures, with the cash thought to be overseas, tucked away in homes unreported or being used in the "shadow economy".
Have you got a piggy bank full of savings? See our guide on valuable money, here.
