For more than two centuries, U.S. shoppers have watched pennies jingle in their pockets. That era officially ends this week as the U.S. Mint stamps out its final one-cent piece. Today, it costs almost four cents to produce a penny—nearly four times its face value.
Launched in 1793, the penny once paid for a loaf of bread. But with inflation and digital wallets on the rise, its purchasing power has plummeted. Over the past decade, cash transactions have dropped by 30 percent, according to Federal Reserve data. Around the world, countries from Canada to New Zealand have scrapped their smallest coins and adopted round to five-cent pricing at checkout.
Beginning in early 2026, pennies will phase out of daily use. Retailers will round cash totals to the nearest nickel, while digital prices remain exact. Economists estimate this shift could save taxpayers up to 90 million dollars annually by cutting production and handling costs.
For coin collectors and history buffs, the final penny is a keepsake—a nod to the nation’s early days, when George Washington still lived. For the rest, it marks a small step toward streamlining currency in an increasingly digital world.
As the penny slides into history, we face a heavier question: what comes next for physical money? With cryptocurrencies and central bank digital currencies gaining ground, the end of the penny may just be the start of a new monetary era.
Reference(s):
cgtn.com
