25-05-2025
What could happen if US Treasury phases out pennies?
Is the United States Treasury killing off the penny?
Here's everything you need to know about the fate of the 1-cent, Abraham Lincoln-adorned currency.
Published reports indicate the United States Treasury will stop circulating freshly minted pennies, beginning in early 2026.
A separate report noted the United States Mint is producing its final batch of pennies.
When the penny is eventually phased out completely, it will potentially lead to businesses and consumers not having enough pennies to make transactions involving cash.
"Cash transactions will now be rounded to the nearest nickel, sparking debate over its impact on pricing and consumer spending," read NewsRadio's report. "While some economists argue that eliminating the penny will streamline transactions, others worry about pricing adjustments and the potential for inflationary effects."
The Treasury Department assured consumers that existing pennies will remain legal tender, but banks, businesses and retail establishments are expected to begin phasing out the currency.
Along with the U.S. Mint in Philadelphia, federal mints in Denver and San Fransisco have up until now minted pennies.
The Philadelphia Mint is the nation's first.
Aside from formerly minting pennies, the Philadelphia Mint also mints circulating coins, numismatic products, including annual uncirculated coin sets, commemorative coins as authorized by Congress and federal medals.
Damon C. Williams is a Philadelphia-based journalist reporting on trending topics across the Mid-Atlantic Region.
This article originally appeared on Delaware News Journal: What could happen if US Treasury phases out pennies?
