Sources estimate pennies will no longer be minted early next year | Credits: John Brueske/Shutterstock
The US Treasury Department recently announced it would gradually end minting pennies, which have been produced for over 230 years.
While millions of people express concern over their fate, US authorities have said pennies will still remain legal tender and will still be in use at thousands of retailers across the United States.
“If we look at the experience in Canada, for the first year after they stopped making pennies, there’s really no change in transactions,” Jeff Lenard, spokesperson for the National Association of Convenience Stores, told CNN. Lenard said convenience shops in the US do more cash transactions than any other group in the country. About 32 million or 20 per cent of all daily purchases by customers, he added.
Retailers will continue accepting them
The National Retail Federation, which represents most major US store chains and thousands of small retailers, said it anticipates its members will use pennies even after production stops at some point early next year.
However, it is anticipated that many shops will round cash transactions to the nearest nickel once penny supplies at banks begin to be scarce.
Electronic transactions, such as credit and debit card purchases, will continue to be down to the penny, Lenard said, with only cash transactions being rounded.
“Retailers’ primary goal is serving customers and making this transition as seamless as possible,” said Dylan Jeon, senior director of government relations for NRF.
About 114 billion pennies
Treasury Department officials said there is an estimated 114 billion pennies in circulation across the US, but said they are “seriously underutilised.” Most are at home in jars, junk drawers or forgotten somewhere collecting dust.
On February 10th, 2025, President Donald Trump said pennies are a waste in a post on his social media platform, Truth Social.
“For far too long, the United States has minted pennies which literally cost us more than 2 cents,” he said. “This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies. Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time.”
