Time to Retire the Penny? What’s your opinion?
In May 2025, the U.S. Mint announced it had placed its final order for penny blanks, signaling the beginning of the end for the one-cent coin. While no official law has been passed to eliminate the penny entirely, the Mint confirmed that production will cease once the current supply of blanks is exhausted—expected in early 2026. The penny will remain legal tender until Congress decides otherwise. This decision was driven largely by cost inefficiencies, as it now costs more than two cents to produce a single penny. Ending production is projected to save the federal government around $56 million annually in material and operational costs.
This marks a significant turning point in American currency history, as the penny has been in continuous production since 1793. However, its economic utility has steadily declined. With inflation eroding its value, and most Americans rarely using it in daily transactions, its relevance has come under increasing scrutiny. Other countries—including Canada and Australia—have successfully eliminated their lowest-denomination coins and adopted a rounding system for cash transactions. The U.S. plans to follow suit: once pennies disappear from circulation, cash purchases will be rounded to the nearest five cents, a system shown to be fair over time.
While the move is widely supported for its fiscal logic, it raises some concerns about its impact on cash-reliant populations. Ensuring fair and transparent rounding practices will be critical. Still, the decision represents a practical shift toward a modernized, cost-effective currency system, reflecting both changing economic conditions and consumer habits in an increasingly digital economy.