In a significant move, Donald Trump announced that the U.S. will cease minting pennies, citing the high cost of production as wasteful.

Legislation aimed at eliminating the penny has been introduced multiple times in Congress, with past proposals advocating for rounding prices to the nearest five cents.

The decision reflects ongoing discussions about the practicality of continuing to mint low-denomination coins in today's economic climate.

Supporters of the penny argue it helps keep prices lower and aids charitable fundraising, while detractors highlight its cost and inefficiency.

Critics warn that the elimination of the penny could disproportionately affect cash users, particularly low-income individuals, due to potential rounding taxes.

This decision comes as the 19th consecutive fiscal year where the production costs for pennies and nickels have exceeded their face values.

The National Association of Convenience Stores supports the penny's elimination, suggesting it would speed up transaction times despite the need for rounding.

Gates Little, CEO of Southern Bank, stated that eliminating the penny would not harm the economy and could increase the value of hoarded pennies over time.

Economists argue that the penny is an economic burden, as many coins go missing, necessitating constant replacements from the U.S. Mint.

Analyst Jaret Seiberg from TD Cowen predicts that the halt on penny production will likely withstand judicial review, potentially leading to a shortage.

Historically, the U.S. has previously discontinued low-value coins, with the last being the half-cent coin in 1857.

This proposal is not new; similar discussions have been ongoing in Europe for over a decade regarding the elimination of low-denomination coins.