Washington, D.C. – After more than two centuries in circulation, the United States will officially stop producing the one cent coin—commonly known as the penny—starting next year, the U.S. Treasury Department has confirmed.

The decision, which has long been debated in both economic and political circles, was finalized following an order from former President Donald Trump earlier this year. According to insiders, Trump instructed Treasury Secretary Scott Bessent in February to halt penny production, branding the coin “wasteful.”

The Treasury’s announcement marks the end of one of the oldest coins in U.S. history, first minted in 1793. Despite its iconic status, the penny has become more costly to produce than it is worth. Treasury data shows that the cost to mint a single penny has surged from 1.3 cents to 3.69 cents over the past decade—making the coin a net loss for the government.

The United States Mint estimates that discontinuing the coin will save roughly $56 million annually in material and manufacturing costs.

Cost vs. Tradition

Supporters of the move see it as a logical step in modernizing U.S. currency and cutting waste. Critics, however, argue the humble penny still serves useful purposes—from keeping prices competitive to supporting charitable “penny drives.”

“The final order for penny blanks has been placed,” a Treasury spokesperson told WafricNews. “The Mint will continue manufacturing pennies only while existing blanks last.”

The Wall Street Journal, which first reported the story, noted that businesses may soon need to round prices up or down as a result of the phaseout—a shift that has already taken place in other nations.

Not Alone in the Shift

The U.S. isn’t the first country to retire low-value coins. Canada scrapped its own penny in 2012, citing similar cost concerns and reduced cash usage. In the U.K., while the government hasn’t formally abolished 1p or 2p coins, officials confirmed no new coins were minted in 2024, noting that demand for physical currency is in sharp decline.

Elon Musk’s unofficial “Department of Government Efficiency” (a satirical project often referred to as “Doge”) also reignited the conversation earlier this year. In a viral post on X, Musk questioned why the U.S. was still producing a coin that costs more to make than it’s worth.

As more economies edge toward digital transactions and streamlined currencies, the U.S. penny becomes the latest symbol of a cash-based era drawing to a close.


By WafricNews Desk.