The US Treasury has confirmed that the production of one cent coins will stop next year, marking the end of a 230-year tradition. The decision follows a long debate over the cost and usefulness of pennies in the US.
In February, President Donald Trump told Treasury Secretary Scott Bessent to stop minting pennies, calling them “wasteful”. However, critics argue that producing pennies is not only wasteful but also expensive, with the cost rising from 1.3 cents to 3.69 cents per coin over the past decade.
According to the Treasury, stopping production will result in an immediate annual saving of $56 million (£42 million) in reduced material costs. The phasing out of coins will require businesses to round prices up or down, as reported by the Wall Street Journal.
Other countries have already discontinued similar coins, with Canada removing its one cent coin in 2012 and the UK not minting any new coins in 2024 due to declining cash use. However, some argue that keeping pennies can keep prices lower and boost charity fundraising. The US will continue to produce pennies while an inventory of penny blanks exists.
Source: https://www.bbc.com/news/articles/cx2j07858lno