The US penny has survived numerous attempts to eliminate it, but its fate may now hang in the balance due to the rise of cryptocurrency mogul Elon Musk.
According to a recent post on the official DOGE account on X, Musk has become a vocal critic of the penny, calling it “worthless currency” that symbolizes America’s national dysfunction. This criticism echoes concerns raised by author Caity Weaver in a 7,500-word article published in the NYT Magazine last year.
The staggering number of pennies in circulation – approximately 240 billion weighing around 600,000 tons – is a significant burden on the economy. The vast majority were minted to retailers and distributed as change, but now largely sit unused due to decreased cash usage.
In fact, only about 16% of payments are made in cash, according to the Federal Reserve banks. Furthermore, the cost of producing each penny has increased to 2.72 cents per coin, with the US Mint reporting a 17th consecutive fiscal year where the production cost exceeded its worth.
The implications of this trend have led some to question whether abolishing smaller denominations like nickels and dimes would be a rational step forward. As one DOGE spokesperson noted, “Shouldn’t you ask Treasury?” However, Treasury officials have yet to respond to requests for comment on the matter.
Source: https://www.axios.com/2025/02/02/penny-musk-doge