Cash-coinage has been in circulation for centuries, but it has now been discontinued.
In a significant move, the United States has announced its decision to discontinue the production of the one-cent coin, commonly known as the penny, starting from early 2026. This decision comes after more than 230 years of circulation.
The news follows a recommendation made by the National Cash Forum in March 2025, which suggested adopting regulations similar to those in Eurozone countries. The move is a response to the growing trend of contactless payments and the digital age, where many stores now accept mobile phone payments.
The one-cent coin, first issued by the American government in 1793, has featured former President Abraham Lincoln since 1909. However, the cost of minting a single penny now exceeds its value, costing 3.69 cents. With around 114 billion pennies in circulation, the expense of producing them is becoming increasingly burdensome.
The discontinuation of the penny is not a unique occurrence. Other European countries have already implemented similar regulations, and Finland, for instance, has a law in place that requires cash payments to be rounded to the nearest five-cent value.
The shift away from cash is also evident among younger generations. With the rise of digital payments, young people are carrying less and less cash in their wallets. This trend, coupled with the expense of producing the penny, has led to the decision to discontinue its production.
From 2026 onwards, no new one-cent coins will be put into circulation. However, existing pennies will still be accepted as legal tender. There is a regulation in place for how uneven amounts will be paid in cash in the future if the penny is discontinued, with amounts being rounded up or down to the nearest five-cent value.
The last penny production run is set to begin soon, marking the beginning of the end for the one-cent coin in everyday life. This decision, while significant, reflects the changing times and the ongoing advancement of digital technology. As we move forward, it's clear that the digital age is here to stay.
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