US Treasury discontinues production, circulation of Pennies centuries after

*The United States Treasury Department discloses the production of a Cent coins will end 2026, just as some critics of the Pennies consider their continued production and circulation as ‘a waste of money and resources’

Alexander Davis | ConsumerConnect

Citing wastefulness of the coins, the United States (US) Treasury Department has said the production of a Cent coins will end 2026.

News of plans to discontinue the minting and distribution of the US coins, commonly known as pennies, has been in circulation.

ConsumerConnect gathered the pennies have been in circulation in the American country for over 200 years.

Highlighting the importance of ending the production of pennies, US President Donald Trump, February 2025, had told Scott Bessent, Treasury Secretary, to stop minting the coins, which he said were wasteful, BBC report said.

Besides, Elon Musk’s unofficial Department of Government Efficiency (DOGE) in the Trump administration, January this year, also spotlighted the cost of minting pennies in an X post.

Age-long currency

The penny, which entered circulation 1793, was one of the first coins made by the US Mint.

However, according to the Treasury, the cost of producing it has risen from 1.3 cents to 3.69 cents per coin over the past 10 years.

The Mint estimates that stopping production will result in an immediate annual saving of $56m (£42m) in reduced material costs, agency report said.

Critics of the zinc and copper coin as well hinted at producing it as a waste of money and resources.

But those who want to keep it argue it keeps prices lower and boosts fund-raising for charities.

The Wall Street Journal (WSJ), which first reported the story, had noted that phasing out of the coins would mean businesses would need to round prices up or down.

A US Treasury spokesperson said: “Confirming the WSJ story, the Treasury has made its final order of penny blanks this month, and the United States Mint will continue to manufacture pennies while an inventory of penny blanks exists.”

Other countries, including Canada, Nigeria, and others have discontinued issuing and using similar coins.

Citing the cost of minting it and its falling purchasing power due to higher prices, Canada ditched its one-cent coin in 2012.

The declining use of cash meant the United Kingdom (UK) minted no new coins 2024; this came after officials decided there were already enough coins circulating.

Although the UK Treasury has said that £1 or £2 coins were not being scrapped, with more people living cashless lives, there have been several years when the £2 coins were not produced.