US Treasury confirms the end of the penny
US to Stop Production of One Cent Coins in 2023
The Treasury Department has officially announced that one cent coins, commonly known as pennies, will no longer be produced in the United States starting next year. This decision marks the end of an era for the coins, which have been in circulation for over two centuries.
The move to cease production of pennies comes after President Donald Trump directed Treasury Secretary Scott Bessent to stop minting the coins earlier this year, citing them as “wasteful.”
There has been ongoing debate regarding the cost and utility of pennies in the US, with concerns raised about the expenses associated with producing the coins.
Elon Musk’s unofficial Department of Government Efficiency (Doge) brought attention to the cost of minting pennies in a recent post on X, highlighting the financial implications of continuing production.
The penny holds historical significance as one of the first coins minted by the US Mint in 1793. However, the cost of production has steadily increased over the past decade, rising from 1.3 cents to 3.69 cents per coin, according to the Treasury.
By discontinuing production, the Mint anticipates saving $56 million annually in reduced material costs.
While critics argue that producing pennies is a waste of resources, proponents suggest that the coins help maintain lower prices and support charitable fundraising efforts.
Businesses will need to adjust to the absence of pennies, with prices expected to be rounded up or down, as reported by the Wall Street Journal.
A Treasury spokesperson confirmed the final order of penny blanks this month, indicating that production will continue until existing inventory is depleted.
Notably, other countries like Canada have already phased out their one cent coins due to similar concerns over production costs and purchasing power.
The UK has also seen a decline in coin usage, with no new coins minted in 2024. While 1p and 2p coins are not being eliminated, the shift towards digital payments has led to reduced production of these denominations.
