In brief
In a historic move, the U.S. Mint in Philadelphia has minted its final penny, as President Trump cancels the 1-cent coin due to rising production costs of nearly 4 cents per penny. The decision arises amidst a decline in coin usage in everyday transactions. Despite a nostalgic attachment to the penny, many retailers express concern over the sudden decision and lack of guidance on future transactions. The Treasury Department anticipates significant savings by ending penny production, while some key figures in the retail sector hope for a smoother transition.
PHILADELPHIA (AP) — Once able to buy a biscuit or candy, the humble penny is being put to rest. The U.S. Mint is set to strike its final penny in Philadelphia, following President Trump's order to cease production of the coin due to it costing more to manufacture than its face value.
The last penny will be minted on Wednesday, marking the end of a tradition that dates back to the Coinage Act of 1792. The production cost has ballooned to nearly 4 cents per penny, leading to the decision to discontinue the coin as part of a broader effort to modernize transactions in a digital economy.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents,” Trump stated in an online post, referencing the wasteful nature of penny production. Coins have been largely deemed unnecessary for everyday purchases, with a significant number collected as keepsakes or sitting in jars.
Despite the banishment of the penny, many Americans hold nostalgic views on the coin, with some considering it lucky or fun to collect. Concerns arose from retailers about the abrupt nature of the cancellation and its implications on transactions. While some businesses may evolve their pricing strategies to deal with the coin's absence, many hope for clearer guidelines in moving forward.
In a quirk of financial planning, some banks have begun rationing coins as part of the ongoing adjustment to the diminishing number of pennies in circulation. U.S. Treasury Secretary Scott Bessent and Treasurer Brandon Beach are set to attend the final production run in Philadelphia, anticipating savings of around $56 million annually by discontinuing the penny.
While the penny sinks into oblivion, other coins like the nickel, which costs nearly 14 cents to produce, may soon follow. The dime, a more economically viable coin, costs around 6 cents to produce, leaving a significant question about the future of U.S. currency.
