One-Cent Coin Manufacturing Discontinued in U.S. - United States Halts One Cent Coin Production
The United States will discontinue the production of the one-cent coin, a practice that has been in place for over two centuries, according to the Treasury Department. This decision, which was announced on Thursday, indicates that no new one-cent coins are likely to be in circulation starting in early 2026, as the last order for coin blanks was placed this month.
The move is supported by both political parties, who cite the escalating cost of production as the primary reason. Whereas the cost of producing one coin was 1.3 cents in 2012, it has seen a marked increase to 3.69 cents today. This change is estimated to save approximately $56 million annually.
President Donald Trump instructed Treasury Secretary Steven Mnuchin in February to cease the production of the coin. In cash transactions moving forward, amounts will be rounded to the nearest five-cent value. The five-cent coin, known as a "nickel" in the U.S., is to remain in circulation. Currently, there are around 114 billion one-cent coins in circulation, the coin's first issuance by the U.S. government dates back to 1793, and it has showcased President Abraham Lincoln since 1909.
There are debates about the future of small change across the Eurozone as well, with some countries on the path of phasing out the one-cent coin. However, as of now, there are no announced plans for Germany to follow suit. In 2025, the National Cash Forum in Germany proposed rounding cash payments to the nearest five Euro-cent, but this would only impact two-cent coins, as they have no equivalent in the U.S. The National Cash Forum, which encompasses associations from the credit industry, retail, consumer protection, and vending machine operators, was established in 2024 by the German Federal Bank.
Cash transactions, USD, and the USA are central themes in this development, as the US Treasury definitively moves forward in ending the production of the penny.
The US Treasury's decision to discontinue the production of the penny will significantly impact business operations, as cash transactions in the US will no longer involve the one-cent coin starting in early 2026. This shift in finance, focusing on the US dollar, is expected to save around $56 million annually.
