What Scrapping the Nickel Could Mean for Future of Cash
Summary
The U.S. Mint stopped making pennies for everyday use in 2025 because it costs more to produce them than their worth. Now, the nickel, which costs more than five cents to produce, might be next to be discontinued to save money. This could change how people use cash, making them round prices to the nearest dime when paying with cash, while electronic payments remain exact.Key Facts
- Pennies stopped being made for general use in November 2025 after 232 years.
- The nickel has been in use since 1866 and features Thomas Jefferson since 1938.
- Producing one nickel cost the U.S. Mint about 13.31 cents in fiscal year 2025.
- Ending nickel production would save the government money but make cash transactions less precise.
- Cash use is declining but still accounts for 14% of consumer payments as of 2025.
- Without pennies, retailers can round cash transactions to the nearest five cents under the Common Cents Act.
- If nickels are eliminated, cash totals might be rounded to the nearest dime, potentially costing consumers more.
- Congress is considering options to make nickels cheaper to produce or keep them in circulation due to cash's ongoing use.
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