US President Donald Trump directed the Treasury to stop the production of coins from the “Pence” category, describing the currency mint as “a waste of public money.”
Trump announced in a post on the “Truth Suchs” platform, “The United States has lasted for more than two years for each one. It is time to remove waste from the budget of our great nation, even if it is a year every time.”
Increased cost and demand declining
According to a report issued by the US Currency House, the cost of one penny production increased by 20% during the fiscal year 2024, to reach 3.7 cents compared to 2.7 cents in 2022.
As the demand for coins continues to decline, it is estimated that the Americans get rid of the coins worth up to $ 68 million annually, according to Wall Street Journal. Trump added that this decision aims to enhance government efficiency and reduce waste, pointing to previous successes achieved by countries such as Canada, which stopped the production of “Pence” in 2012, Australia and New Zealand, which canceled small currencies in the 1990s.
Challenges for merchants and consumers
Despite the potential economic benefits, the decision raises controversy over its impact on merchants and consumers, according to the newspaper.
The disappearance of “penny” is expected to lead to the need for approximate prices to the nearest 5 cents in cash transactions.
This could be a challenge for merchants who will have to adapt to low penalties from penalties or find new ways to provide currencies, said Great Seburg, an analyst at the “TD Crown” company.
“In the event of removal of the penny from trading, Congress is likely to move quickly to legislate mechanisms that enable merchants to bring monetary transactions to the nearest nickname,” Seburg added.
Supporting government competence
This move comes within the framework of the efforts of the Ministry of Governmental efficiency, headed by Elon Musk, to reduce government spending. The ministry, known as “Dog”, has announced that it has provided more than one billion dollars by reviewing federal programs and determining the sources of waste.
A report issued by “Doug” in January 2025 indicated that “the pennies cost American taxpayers more than $ 179 million in the fiscal year 2023.”
