One-cent coin manufacturing by the U.S. Mint has formally ended. - Stoppage of One Cent Coin Production by the United States Mint
The United States will no longer produce the one-cent coin from 2026, marking over two centuries of circulation. The Treasury Department announced its final order for one-cent blanks this month, signaling the end of a tradition dating back to 1793.
The decision to discontinue the smallest U.S. coin, predominantly made of zinc and copper, stemmed from mounting production costs. From 1.3 cents per coin in 2012, the production expenses have escalated to 3.69 cents, far surpassing the coin's face value. The abolition of the penny is expected to save the government approximately $56 million annually.
President Donald Trump has ordered Treasury Secretary Steven Mnuchin to cease production, with future cash transactions rounding to the nearest five-cent value. There are currently around 114 billion one-cent coins in circulation, featuring President Abraham Lincoln since 1909.
The one-cent coin is also under scrutiny in the Eurozone. Amongst them, Finland has effectively phased out the coin, while Germany is considering rounding cash payments to the nearest five Euro-cent, making two-cent coins redundant. This move, if implemented, would also abolish two-cent coins, as they have no equivalent in the U.S. denomination.
Established in 2024, the National Cash Forum, comprising associations of the credit industry, retail, consumer protection, and vending machine operators, made the recommendation for Germany. Other countries such as Canada, Australia, New Zealand, Mexico, and Indonesia have already phased out low-denomination coins due to their diminishing purchasing power and production costs. The key reasons behind considering the discontinuation of one-cent coins include significant financial losses for the government due to high production costs, limited relevance in modern cash transactions, and potential savings for taxpayers and government efficiency improvements.
The Key reasons behind considering the discontinuation of one-cent coins in the United States, as well as in other countries like Canada, Australia, New Zealand, Mexico, Indonesia, and Germany, include significant financial losses for the government due to high production costs, limited relevance in modern cash transactions, and potential savings for taxpayers and government efficiency improvements. The decision also aligns with the US Treasury Department's move to cease production of one-cent coins, marking a shift in the finance industry.
