By Admin 
America’s smallest value coins & lsquo; Penny & rsquo; (1 st) the journey is now moving towards the end. The US Treasury Department has announced that the production of new sharp coins will be stopped from the beginning of 2026. This decision has come when the government has started to consider it unusable due to the high construction cost and limited utility of the coin. This historic decision will save about Rs 477 crore ($ 56 million) every year.
Why this decision was taken?
At present, the cost of making a sharp coin comes approximately 3.7 cents (Rs 3.08), which is about four times more than 1 st. In the year 2024, American Mint made around 3.17 billion sharp coins, on which the government spent more than $ 85 million (more than Rs 710 crore). Given this cost and decline in use, the government has decided to stop production from 2026.
what will happen to the existing coins?
New sharp coins will not be built, but the coins which are still in trend will remain valid currency. The government has made it clear that citizens will be able to use the coins present with them as before. Currently, about 114 billion sharp coins are in circulation in the US, which will continue to be used in the near future.
Cash transaction effects
Cash transactions may have a slight impact due to closure of sharp production. The transaction amount will now be scored to the nearest 5 cents now. For example, if the price of an object is $ 1.02, it can be scored up to $ 1 or $ 1.05. A similar system has been adopted in countries like Canada and Australia. However, it will not have any effect on digital payments, because the transaction there is in the exact amount.
cultural significance has also been deep
Penny was not just a small coin, it has also been a symbol of American history and culture. It was first released in 1793 and since 1909, a picture of 16th President of America Abraham Lincoln is being inscribed on it. Penny has been a part of American pockets and hearts for a long time, even though its purchasing power has become negligible today.