On Wednesday, the United States Mint in Philadelphia struck the final circulating penny, marking the end of its 232-year production.
“There are an estimated 300 billion pennies in circulation — far exceeding the amount needed for commerce,” the Mint said in a formal statement. The penny remains legal tender, but new coins will no longer be released for everyday transactions.
Why the Phase-Out of the Penny Happened
Rising costs and shifting payment habits were cited as the chief reasons behind the decision. According to the Mint, producing each penny now costs about 3.69 cents — more than three times its face value.
Acting Director Kristie McNally said, “While general production concludes today, the penny’s legacy lives on.”
Treasurer Brandon Beach, who pressed the final coin, added, “Today the Mint celebrates 232 years of penny manufacturing.”
The move is expected to save about $56 million per year for the minting operation.
Although new pennies will no longer be minted for circulation, the coinage law remains in force — existing pennies can still be used in commerce.
The Mint will continue producing a limited number of 1-cent coins for collectors and numismatic purposes.
Some banks and retailers are facing operational adjustments as the supply of newly minted pennies disappears. The American Bankers Association requested guidance from the Treasury on how to manage rounding and cash-handling.
For many Americans, the 1-cent coin has held symbolic value since the coin was first authorized under the 1792 Coinage Act.
Critics said the decision was long overdue. “We have been advocating abolition of the penny for 30 years,” said Jeff Lenard of the convenience-store association. “But this is not the way we wanted it to go.”
Still, some merchants expressed concern about the abrupt nature of the change and the lack of comprehensive guidance.
From this point forward, cash transactions in the United States may increasingly round to the nearest five cents, and digital payments will fill the gap the 1-cent coin leaves behind.