The decision, announced on a social media platform, is framed as a cost-cutting measure, following concerns raised by Elon Musk’s Department of Government Efficiency (DOGE) about the expense of minting the coins. The US Mint’s 2024 report indicated that each penny costs 3.69 cents to produce and distribute.

The debate over the penny’s future is not new, with previous attempts to discontinue it failing. Opponents argue it’s a wasteful expense, while supporters claim it keeps prices down and aids charitable fundraising.

Other countries, such as Canada in 2012, have successfully phased out their lowest-denomination coins. Since then, when a transaction, paid in cash, ends in one-cent or two-cents, it is rounded down to zero, and when it ends in three-cents or four-cents, it is rounded up to five.

In 2024, the UK decided to there was no need to mint new coins as there were enough in circulation. Although no UK coin minting has yet been discontinued, it has now been several years since any 2p coins have been produced.