US Ends Penny Production: $56 Million in Savings Expected

The United States Treasury Department made a significant announcement on Thursday, May 23, 2025, regarding the production of pennies. The department confirmed it has placed its final order for blank pennies, effectively ending the production of the 1-cent coin. This decision is projected to result in annual savings of $56 million, primarily due to reduced material costs. A spokesperson for the Treasury Department stated, "Demand for the penny has drastically decreased." This decline in demand is attributed to the growing trend of cashless transactions. A recent survey by PLW Research revealed that more than 40% of Americans reported making no cash purchases during a typical week. This shift towards digital payments has significantly reduced the need for physical currency, including pennies. The cessation of penny production marks a notable shift in the nation's monetary policy and reflects the evolving landscape of financial transactions.