U.S. Mint Halts Penny Production, Ending 230-Year Era of One-Cent Coin

2 hours ago7 min read1 comments

In a historic move marking the end of a 230-year tradition, the United States Mint has officially discontinued production of the one-cent penny. The decision, driven by persistent economic realities where production costs have surpassed the coin's nominal value, signals a significant shift in American commerce.First authorized by the Coinage Act of 1792, the penny long served as a foundational element of the U. S.monetary system, but has increasingly been viewed as economically inefficient in modern transactions. The transition away from the penny follows the successful models of other nations, such as Canada and Australia, where cash transactions are rounded to the nearest five cents without disrupting retail economies.While the penny holds a deep-seated cultural presence in American idioms and traditions, practical considerations ultimately prevailed over sentimental attachment. The phase-out will necessitate updates to payment systems, including vending machines and self-service kiosks, while financial institutions will continue to handle existing pennies still in circulation. This move not only addresses contemporary fiscal efficiency but also highlights the gradual evolution of national symbols in response to economic progress.

#central banks

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#penny

#production halt

#manufacturing costs

#US Mint

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