US Mint moves forward with plans to kill the penny

telcodad · 2025-05-22T17:26:51+00:00

A penny nickel for your thoughts about this: Stop making cents: US Mint moves forward with plans to kill the penny By Fatima Hussein and Alan Suderman, AP - May 22, 2025 https://apnews.com/article/us-mint-treasury-department-penny-end-production-daf6367d7e8d31d6783720d5d4667115 WASHINGTON (AP) — The U.S. Mint has made its final order of penny blanks and plans to stop producing the coin when those run out, a Treasury Department official confirmed Thursday. An immediate annual savings of $56 million in reduced material costs is expected by stopping penny production, according to the official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity to preview the news. In February, President Donald Trump announced that he had ordered his administration to cease production of the 1-cent coin. Advocates for ditching the penny cite its high production cost — almost 4 cents per penny now, according to the U.S. Mint — and limited utility. Fans of the penny cite its usefulness in charity drives and relative bargain in production costs compared with the nickel, which costs almost 14 cents to mint. ….

Heat84

telcodad

If they’re legal tender down here, why aren’t they accepted as such by stores, restaurants, etc? Especially down here in Florida since Canadians love coming here.

Somewhat-Reticent

Heat84 Exchange rate varies constantly. They’re not equal.

Sparkchaser

Heat84 If they’re legal tender down here,

Where does it say they are legal tender?

telcodad

Sparkchaser Where does it say they are legal tender?

He may have said that because of this:

telcodad … accepted across the border

However, from: https://www.govmint.com/coin-authority/post/why-are-canadian-coins-allowed-to-circulate-in-the-usa

While not legal tender in the United States, Canadian coins find a degree of acceptance, generally by error during transactions, particularly in areas close to the Canadian border or in locales frequented by Canadian tourists. This informal acceptance is primarily due to the practicality and convenience for consumers and businesses in these regions. The similarity in size and appearance between certain Canadian and U.S. coins, such as quarters and dimes, contributes to this phenomenon.

However, it’s important to note that this acceptance is neither universal nor official. The U.S. does not recognize Canadian coins as legal tender, meaning there is no obligation for any business or individual to accept them. …

Sparkchaser

telcodad However, it’s important to note that this acceptance is neither universal nor official. The U.S. does not recognize Canadian coins as legal tender,

That was my point 🙂

Also……. Even for the US, “There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.”
https://www.federalreserve.gov/faqs/currency_12772.htm

Dks01

Heat84 While we’re talking about coins, why do American coins look almost exactly like Canadian coins? It can’t be a coincidence. I think it’s because Canada wanted to sneak their coins into our economy.😡 Why didn’t they copy our cash? I guess they’re not talented enough to do that.

In border areas businesses will run two tills, one in each currency, or refuse non-national money entirely. Many years ago, in my working life, long before credit cards, it was hilarious when US tourists offered US dollars ad we refused them. They got rather irate. We pointed them to a local bank where they could exchange their money. I guess they weren’t talented enough to know they were in a foreign country.

telcodad

telcodad The U.S. does not recognize Canadian coins as legal tender, meaning there is no obligation for any business or individual to accept them. …

I forgot to add: “at least until Canada becomes the 51st U.S. state.” 😃

Dks01

Heat84 If they’re legal tender down here, why aren’t they accepted as such by stores, restaurants, etc? Especially down here in Florida since Canadians love coming here.

Not for long. Canadians are not travelling to the US and are selling their homes in Florida and Arizona and Texas.

Many Canadians have been opting not to visit the U.S. in recent months for a number of reasons, such as increased scrutiny and risk of detention at the border, or as a way to boycott the U.S. given (redacted) threats and talk of annexing Canada.

https://www.cbc.ca/news/business/canada-travel-april-1.7532552

The up side is that it will open up Florida real estate to a tough housing market.

https://money.ca/real-estate/canadian-snowbirds-selling-us-properties-cancelling-trips

Heat84

telcodad

Oh, so Canadian coins are legal tender if American businesses choose to accept them, but they choose not to accept them.

Dks01

telcodad AI is full of sh**. Canada had sterling currency as legal tender up to 1867, when the Canadian dollar became legal tender and based on the Gold Standard. https://en.wikipedia.org/wiki/Canadian_pound

dave

Heat84

Canadian money is not legal tender in the USA, period.

You are free to accept in payment Canadian money, or any other currency, or a box of wet fish if you prefer. That you will accept it does not cause it to become ‘legal (US) tender’.

Dks01

telcodad I forgot to add: “at least until Canada becomes the 51st U.S. state.” 😃

To quote Prime Minister Carney, “Never.”

Heat84

dave Canadian money is not legal tender in the USA, period.

I thought I was un-confused. Now I’m confused again. You guys need to get your story straight.

dave

Heat84

No-one other than you has claimed that Canadian coins and banknotes are ‘legal tender’ in the US.

That you can find someone in the US to take Canadian money does not make it ‘legal tender’ in the US.

telcodad

Dks01 AI is full of sh**. Canada had sterling currency as legal tender up to 1867, when the Canadian dollar became legal tender and based on the Gold Standard.

Must have been one of those “AI hallucinations.” 😉

[See: https://broadbandbulletin.com/d/3374-a-simple-guide-to-common-ai-terms ]

InternetJeff

Sparkchaser Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.

Here are some of those places…

Massachusetts has had such a law in place since 1978, and New Jersey enacted similar legislation in 2019. A few cities (e.g., San Francisco, Philadelphia) have prohibited stores from going cashless as well.

https://www.snopes.com/fact-check/legal-tender-payment/

WalterDnes

There’s a “picky…picky…picky” distinction to watch out for.

Scenario 1
you order a meal at a restaurant
the restaurant makes and serves you the meal
you now have a debt to the restaurant, for which “legal tender” is a valid payment, e.g. paper money. No if’s and’s or’s but’s.

=======================

Scenario 2
you order a meal at a restaurant
the restaurant asks for your credit card
you don’t have a card
the restaurant refuses to make and serve the meal
there is no transaction, and no debt

Scenario 2 is perfectly legal, unless a local jurisdiction mandates that businesses MUST accept offers in advance to purchase/pay with cash.

Sparkchaser

Heat84 I think it’s because Canada wanted to sneak their coins into our economy.😡 Why didn’t they copy our cash? I guess they’re not talented enough to do that.

I finally has to comment on this.

Canadian pennies, nickels, etc is going to disrupt the US or help CA???

Canada is quite talented in their currency design. You’ll note the changes made in theirs vs ours.

The US does have a problem. Almost 50% of the US notes are held outside of the US, about 2.2billion. Any change in the design and the desire to swap them for new note is daunting.

Sparkchaser

WalterDnes

WalterDnes There’s a “picky…picky…picky” distinction to watch out for.

Yep

I worked in an “ancillary” industry to “coin/currency”.

When I retired, I almost always paid with cash just to support industry. Now, I show the CC in about 98% of purchases. 🙂

Dks01

Sparkchaser Same here. I am paid entirely by direct deposit into my bank account. I use my credit or debit cards for any payment. I never use cash except for donations to panhandlers.

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