The end of the American penny?

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00:00Turning to news overseas, it is one of the rare items whose production or minting cost exceeds its face value.

00:07Yet it is a staple coinage or required pocket change in groceries and supermarkets or retail stores needed for exact and complete payment.

00:15The American penny.

00:17But then it may have completely worn out its usage and practicality with a recent announcement of U.S. President Donald Trump

00:23to put an end to its centuries-old circulation as we hear from this VOA story.

00:30They're found near cash registers, in change jars, and often on the sidewalk.

00:35But the American penny might soon become a relic, as President Donald Trump has ordered the United States Treasury to stop minting the one-cent coin.

00:45This is not the first time the penny has come under fire.

00:48With copper prices rising since the 1970s, each one-cent coin costs 3.7 cents to mint.

00:55The U.S. Treasury lost $85.3 million last year alone producing them.

01:02And while a penny could once buy a piece of candy, the coins now have virtually no value because of inflation.

01:07Some countries, such as Canada and Australia, have already eliminated their one-cent coins, while others, such as Hungary and Czechia, have stopped subdividing their main currency unit entirely.

01:19But although legislation to stop minting the penny has been repeatedly introduced in the U.S. since 1990, the coin has endured.

01:27Zinc and copper companies have lobbied the government through organizations like Americans for Common Sense, while consumers have expressed concern about the impact on prices.

01:37Abolishing the penny would likely require minting more five-cent nickels, which are even more expensive to produce relative to their value.

01:46Beyond these considerations, the penny has nostalgic and cultural significance.

01:52And the debate also taps into a larger conversation about how the move away from cash and toward digital payments impacts the poorest Americans.

02:00So can the president discontinue the penny while currency decisions are normally made by Congress, Secretary of the Treasury Scott Bessent may be able to unilaterally order the U.S. Mint to stop producing them.

02:15Regardless of the outcome, with 240 billion pennies in circulation, they are likely to stick around for some time to come.

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