The United States Treasury Department has announced that the production of the one-cent coin, known as the penny, will stop next year. This decision ends more than 230 years of the coin being in circulation.
The penny was first made in 1793 and has been a common part of US money ever since. However, over the past decade, the cost to produce each penny has risen sharply—from just over 1 cent to almost 4 cents. This means it costs more to make the coin than the coin’s actual value.
President Donald Trump supported the move earlier this year, telling the Treasury Secretary to stop making pennies because they are a waste of money.
The US Mint estimates that stopping penny production will save the government about \$56 million every year in materials and production costs.
Critics of the penny say it wastes resources and money. They argue that the coin is no longer useful because many prices are higher and the penny has little buying power. Supporters, however, say pennies help keep prices low and support charity fundraising.
With the penny gone, businesses will need to round prices to the nearest five cents when customers pay in cash. This is similar to what other countries have done.
Canada stopped making its one-cent coin in 2012 for the same reasons. In the UK, there were no new 1p or 2p coins made in 2024 because more people are paying without cash, so there are already enough coins.
The move reflects changing times as more people use digital payments and less cash. The end of the penny shows how old money can become less practical.
For now, existing pennies will still be used, but no new coins will be made once the current stock runs out. This change will affect how small transactions are handled, especially in cash-heavy businesses.
The US is joining a growing list of countries that are phasing out low-value coins to save costs and reflect modern payment habits.
