PHILADELPHIA / LONDON (IT BOLTWISE) – After more than 230 years, the US Mint has stopped minting the penny. The decision was made due to the high production costs, which exceed the value of the coin. The last penny was minted in Philadelphia and will be auctioned off.
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The U.S. government’s decision to stop minting the penny marks the end of an era in American monetary history. The penny has been an integral part of everyday payment transactions for over two centuries. But the increasing production costs, which far exceeded the face value of the coin, made this step necessary. The last penny was minted in Philadelphia and is now being auctioned, while the coins already in circulation remain legal tender.
US President Donald Trump had already announced the cessation of penny production in February. The decision was made to reduce costs, as a penny costs about four cents to produce. This economic imbalance led to the idea of withdrawing the smallest coin from circulation. U.S. Treasurer Brandon Beach said the last pennies minted will be auctioned off while the coins in circulation can still be used.
Companies in the US are now faced with the challenge of rounding up or down their prices to the next larger coin, the nickel. This shift requires adjustments in pricing and could impact consumers’ price perceptions. Some business representatives expressed concerns about the lack of concrete instructions from the government on this approach, which could lead to uncertainties in implementation.
The abolition of the smallest coins has also been discussed in Europe for years. In countries such as Finland, the Netherlands and Ireland, cash payments are already rounded to the nearest five cents amount. However, a complete abolition of one and two cent coins could only be decided at European level. These discussions reflect global efforts to increase payments efficiency and reduce costs.
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