The United States Mint has halted production of its one-cent coin, ending the penny's 217-year circulation history. The decision, finalized in November 2025, follows years of debate over the coin's economic viability – each penny now costs nearly four cents to produce due to rising metal prices and inflation.
Financial analysts suggest this move could streamline retail transactions and accelerate digital payment adoption across Asia's export-driven economies. "This signals a broader global shift toward cost-efficient currency systems," said New York-based economist Dr. Lisa Tanaka, noting similar debates occurring in Japan and South Korea about low-denomination coins.
While the phase-out primarily affects domestic U.S. commerce, international traders are reviewing implications for cross-border transactions. The U.S. Treasury confirms existing pennies will remain legal tender but will gradually disappear from circulation through banking system attrition.
