The U.S. government has decided to phase out the penny after more than 200 years of use,  reported the Wall Street Journal. “The Treasury Department will stop putting new pennies into circulation by early next year. Afterward, there won’t be enough pennies to use in everyday cash transactions, and businesses will need to start rounding up or down to the nearest 5 cents, the Treasury said in a statement,” wrote WSJ. 

The U.S. Mint, which is the Treasury’s in-house coin producer, has projected an annual savings of $56 million in reduced material costs, as the penny costs nearly 4 cents to make. The Mint will reportedly stop making pennies after it runs out of the blank templates used to make them. The final order of blanks was placed this month, according to the statement.  

Per the WSJ, Americans will still be able to use pennies in cash transactions after production stops. However, as pennies fade from circulation, businesses will have to adjust pricing. Noncash transactions will continue to be priced at exact change. The Treasury said state and local governments should provide guidance to retailers so that sales taxes are properly collected.  

Without hearing an explanation for why the penny should be abolished, a recent NACS survey about abolishing the penny found that only about one in three consumers (36%) said they were in favor of eliminating the penny, and only 15% were strongly in favor of it. 

NACS was also featured in the award-winning documentary “Heads Up: When Will We Stop Making Sense?” and the filmmakers were interviewed on the NACS Convenience Matters podcast, “Should the Penny Stay, or Should the Penny Go?” 

Beyond the penny, NACS also developed a backgrounder on why gas prices end in 9/10th of a cent.