Bitcoin

President Trump

Impact

Penny

Read

<p>The U.S. Treasury will retire the penny by 2026 due to high production costs, as confirmed by President Trump and legislators in Washington, D.C.</p>
<p>This event may increase interest in digital transaction micro-units like Bitcoin's satoshis, although no official U.S. policy endorses them yet.</p>
<h2 id="us-to-retire-penny-by-2026">U.S. to Retire Penny by 2026</h2>
<p>The U.S. is set to retire the penny in 2026 due to rising production costs and declining usage. The announcement by the U.S. Treasury, following directives from President Trump, marks a shift in cash handling policy. As noted by the U.S. Department of Treasury, "This decision comes after careful consideration of the penny's production costs and its declining usage in everyday transactions."</p>
<p>The decision involves President Trump and Treasury Secretary Scott Bessent, focusing on <a href="https://www.usmint.gov/about/production-sales-figures/circulating-coins-production" rel="noopener noreferrer nofollow">halting penny production</a>. The <strong>Common Cents Act</strong>, sponsored by Representatives McClain and Garcia, guides the <a href="https://www.congress.gov/bill/115th-congress/senate-bill/759" rel="noopener noreferrer nofollow">transition to rounding</a> transactions to the nearest nickel.</p>
<h2 id="56-million-savings-per-year-with-penny-halt">$56 Million Savings per Year with Penny Halt</h2>
<p>The cessation of penny production is estimated to save the government $56 million annually. While the primary impact is on cash transactions, digital payment systems remain unchanged, sparking debate about Bitcoin's micro-payments' role. The <strong>CRS Product Analysis on US International Trade</strong> provides insights on similar financial measures, accessible <a href="https://www.congress.gov/crs-product/IN12572" rel="noopener noreferrer nofollow">here</a>.</p>
<p>Potential outcomes include <a rel="noopener noreferrer nofollow">shifts in cash handling strategies</a> but no direct governmental changes to Bitcoin policy. Historically, similar moves in Canada led to no cryptocurrency adoption in cash markets, indicating certain stability in crypto realms.</p>
<h2 id="coin-elimination-spanning-over-160-years">Coin Elimination Spanning Over 160 Years</h2>
<p>Canada's penny phase-out in 2013 saw a shift to rounding, with no direct effect on digital payments. Historically, the U.S. <a href="https://www.gpo.gov/fdsys/pkg/CREC-2002-03-19/pdf/CREC-2002-03-19.pdf" rel="noopener noreferrer nofollow">retired the half-cent coin</a> in 1857, indicating long-term monetary restructuring tendencies.</p>
<p><strong>Experts suggest</strong> minimal immediate impact on cryptocurrencies like Bitcoin. Kanalcoin's analysis points to potential growth in digital payments' popularity, yet <a href="https://web.archive.org/web/20030509171719/http://www.gop.gov/item-news.asp?docId=42718" rel="noopener noreferrer nofollow">no regulatory endorsement of Bitcoin’s satoshis</a> for fractional use has been declared.</p>
<figure class="wp-block-table">
 <table class="has-fixed-layout">
  <tbody>
   <tr>
    <td><em><strong>Disclaimer</strong>: This <a href="https://www.kanalcoin.com/" target="_blank" rel="noopener noreferrer nofollow"><strong>website</strong></a> provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.</em></td>
   </tr>
  </tbody>
 </table>
</figure> <a href="https://www.kanalcoin.com/us-penny-production-stops-bitcoin/" rel="noopener noreferrer nofollow">Read original article on kanalcoin.com</a>

U.S. Halts Penny Production; Impact on Bitcoin Satoshis

Table of Contents

Kanalcoin

Other articles published on Oct 31, 2025

Join our free newsletter for daily crypto updates!