After centuries of circulation, Currency Coins have been officially halted

In the digital age, where fewer people are relying on cash for transactions, the one-cent coin, also known as the penny, is set to disappear from everyday life. This decision, which affects several European countries, is driven by the increasing cost of producing the coin and the growing preference for digital payments.

The German federal government made the decision to prevent the production of the smallest coin in Germany. This move was made due to the authority of the federal government over coin production and monetary policy, although specific details about who exactly made the decision and when are not provided.

The last production of the one-cent coin is set to begin soon. From 2026, no new one-cent coins will be put into circulation. Similar regulations exist in other European countries, such as Finland, where cash payments are rounded to the nearest five-cent value by law.

The one-cent coin, which features former President Abraham Lincoln, was first issued by the American government in 1793 and has been in circulation for over 230 years. However, with the cost of minting a single penny now exceeding its value at 3.69 cents, it becomes an unnecessary financial burden.

The US is not exempt from this trend. The production of the one-cent coin is set to be discontinued permanently, as decided by US President Donald Trump. This decision follows the trend set by other Eurozone countries, with countries like Germany and Finland already phasing out the one-cent coin.

Young people, who are increasingly relying on mobile phones and apps for payments, are less likely to carry cash. Contactless payment has become a part of everyday life, especially since the Corona pandemic. This shift towards digital payments has accelerated the phasing out of physical cash coins like the penny.

Despite the disappearance of the one-cent coin, there are still around 114 billion pennies in circulation. Regulations are in place for how uneven amounts will be paid in cash in the future if the penny is discontinued, with the amount being rounded up or down to the nearest five-cent value.

The decision to abolish the one-cent coin is under discussion in Europe, with the National Cash Forum advocating for following the regulations of other Eurozone countries. As the digital age continues to advance, it seems that the penny's days are numbered.