The US Mint pressed its final penny yesterday, marking the end of America’s 232-year production of one-cent coins.
Treasurer Brandon Beach pressed the button at the Philadelphia Mint, forming Abraham Lincoln’s image on the last planchet. Each penny—made of copper and zinc—costs 3.7 cents to produce, far exceeding its face value.
Final coins and legacy
The five special pennies, stamped with a small omega above Lincoln’s shoulder, will be auctioned to raise funds for the Treasury.
The US began minting pennies in 1793, initially featuring Lady Liberty, before Lincoln replaced her in 1909. Over the years, inflation and digital transactions have eroded the penny’s utility.
Cash usage dropped to 16% of payments in 2023 from 31% in 2016, according to the Federal Reserve.
Economic shift and aftermath
Stores are unsure how they would tender exact change to customers paying by cash.
President Donald Trump ordered the production halt earlier this year, which led to a penny shortage. Some grocery stores asked customers to exchange their pennies for gift cards of double the amount.
Retailers are concerned about pricing challenges, as rounding rules vary by state, creating uncertainty for stores that accept cash and SNAP payments. Canada, which eliminated its penny in 2013, may serve as a model for America’s transition.
However, retailers believe the move has come too quickly and want the government to establish a standardized rounding rule to avoid confusion.