The Treasury Department has said the production of one cent coins will end in the US in 2026.
This announcement marks the phasing out of the coins, commonly known as pennies, which have been in circulation for more than 200 years, reports AFP.
President Donald Trump had told the Treasury Secretary, Scott Bessent, in February to stop minting the coins, which he said were wasteful, the BBC reported.
There has been a long debate over the cost and usefulness of pennies in the US.
In January, Elon Musk’s unofficial Department of Government Efficiency (Doge) drew attention to the cost of minting pennies in an X post.
Age-Long Currency
The penny, which entered circulation in 1793, was one of the first coins made by the US Mint.
However, according to the Treasury, the cost of producing it has risen from 1.3 cents to 3.69 cents per coin over the past 10 years.
The Mint estimates that stopping production will result in an immediate annual saving of $56m (£42m) in reduced material costs.
According to critics of the zinc and copper coin, producing it is a waste of money and resources, but those who want to keep it argue it keeps prices lower and boosts fund-raising for charities.
According to the Wall Street Journal (WSJ), who first reported the story, the phasing out of the coins will mean businesses will need to round prices up or down.
“Confirming the WSJ story, the Treasury has made its final order of penny blanks this month and the United States Mint will continue to manufacture pennies while an inventory of penny blanks exists,” a Treasury spokesperson was quoted by the BBC as saying.
Other countries have discontinued similar coins. Citing the cost of minting it and its falling purchasing power due to higher prices, Canada ditched its one-cent coin in 2012.
The declining use of cash meant the United Kingdom minted no new coins in 2024; this came after officials decided there were already enough coins circulating.
Although the UK Treasury has said that £1 or £2 coins were not being scrapped, with more people living cashless lives, there have been several years when the £2 coins were not produced.
