Core Viewpoint - The U.S. Mint has announced the cessation of the production of the one-cent coin, which has been in circulation for 232 years, due to the high cost of production exceeding its face value [1][2]. Group 1: Reasons for Cessation - The production cost of the one-cent coin has risen significantly, from 1.42 cents to 3.69 cents over the past decade, leading to substantial financial losses for the U.S. Mint [1][2]. - The one-cent coin was originally introduced in 1793 and has become less useful in modern transactions, often being stored away rather than used [1]. Group 2: Current Circulation of One-Cent Coins - Approximately 300 billion one-cent coins are currently in circulation, far exceeding commercial demand, and they will remain legal tender despite the halt in production [3]. - The Federal Reserve has already suspended orders for one-cent coins at 100 of its 181 distribution points, with more expected to follow, complicating the circulation of existing coins [3]. Group 3: Impact on Other Low-Denomination Coins - The production of other low-denomination coins is also under scrutiny, with the five-cent coin costing nearly 14 cents to produce, and the ten-cent coin costing about 6 cents [2]. - Retailers are seeking legislative guidance on how to handle cash transactions without the one-cent coin, with proposals for rounding transactions to the nearest five cents being discussed [4][5]. Group 4: Legislative and Economic Implications - A bill to establish a national rounding standard has passed a committee but has not yet been voted on by the full House, facing delays due to lobbying and government shutdowns [5]. - The ongoing inflation in the U.S. may lead to further devaluation of low-denomination coins, including the potential gradual elimination of the five-cent coin [5].

Core Viewpoint - The U.S. Mint has announced the cessation of the production of the one-cent coin due to the high cost of production exceeding its face value, marking the end of a 232-year circulation of this coin [1][2]. Group 1: Reasons for Cessation - The production cost of the one-cent coin has significantly increased, from 1.42 cents to 3.69 cents over the past decade, leading to substantial financial losses for the U.S. Mint [1][2]. - The U.S. Mint reported a loss of $85.3 million in the 2024 fiscal year solely from the production of one-cent coins [2]. Group 2: Current Circulation of One-Cent Coins - Approximately 300 billion one-cent coins are currently in circulation, far exceeding commercial demand, and they will remain legal tender despite the halt in production [3]. - The Federal Reserve has already suspended orders for one-cent coins at 100 of its 181 distribution points, with more expected to follow, complicating the circulation of existing coins [3]. Group 3: Future of Other Low-Denomination Coins - There is a possibility that other low-denomination coins, such as the five-cent coin, may face similar challenges due to rising production costs, with the cost of producing a five-cent coin nearing 14 cents [2][5]. - Industry organizations are advocating for legislation to standardize cash transactions to the nearest five cents to mitigate potential legal risks for businesses [5].