The End of an Era: US Treasury Says Goodbye to the Penny

Goodbye Pennies! The US Treasury Department has officially announced that one cent coins, commonly known as pennies, will cease production starting next year, concluding a tradition that has lasted over 200 years. This decision stems from an initiative started by President Donald Trump, who directed Treasury Secretary Scott Bessent to halt minting, deeming the coins “wasteful.”

The conversation surrounding the utility and cost-effectiveness of pennies has been ongoing. In January, tech mogul Elon Musk highlighted the increasing cost of minting these coins through his unofficial Department of Government Efficiency (Doge), bringing the issue to the forefront. Historical context shows that pennies first entered circulation in 1793, but over the last decade, their production costs have skyrocketed from 1.3 cents to 3.69 cents per coin. The Treasury estimates that terminating their production could yield $56 million in savings annually due to reduced material expenses.

While opponents criticize the pennies for being a drain on resources, proponents argue they play a crucial role in maintaining lower prices and supporting charitable donations. With the discontinuation of pennies, businesses will have to adapt by rounding prices either up or down, as reported by the Wall Street Journal.

As other countries have phased out similar coins—Canada stopped minting its cent coins in 2012—the decision reflects broader trends of declining cash use. For instance, the UK has also seen a shift, pausing production of new coins due to an abundance already in circulation.

This significant policy change marks a pivotal moment in US currency history, as the nation transitions away from a once-essential coin.