Signs are increasingly appearing in storefronts across the Triangle, urging customers to either round up their purchases or use debit or credit cards due to a growing nationwide penny shortage. This development follows the recent decision by the U.S. Mint to cease production of pennies altogether, a move that has sparked discussions about the practicality and future of the copper coin.
One local business owner, George Poniros, who runs Roast Grill Hot Wieners—a staple in downtown Raleigh since 1940—expressed his concerns, arguing that rounding up purchases is inherently unfair. “Someone’s going to end up with a lot of free money in profit. If you round up or you round down, somebody’s going to lose money,” he stated. Poniros has always encouraged his customers to pay with cash, particularly coins, and has set prices intentionally at whole numbers to facilitate this method of payment. “All the time we’ve been here, cash only,” he noted, reminiscing about a previous attempt to accept credit cards which he described as a “mess.”
The economic rationale behind the penny’s decline is significant. According to recent reports, both pennies and nickels have cost more to manufacture than their respective values for several years. In fact, the U.S. Mint reported spending 3.7 cents to produce a single penny in 2024. U.S. Treasurer Brandon Beach emphasized that while the penny remains legal tender—with over 300 billion still in circulation—the discontinuation of its production will save taxpayers an estimated $56 million annually.
This decline in cash usage is also reflected in consumer behavior. Austin Mattox, owner of Mattox Coins and Currency, noted that the decreasing use of physical coins suggests that the penny, in particular, may have outlived its usefulness. He referenced historical coins that were phased out when they no longer served a practical purpose, including the half-cent, two-cent, and three-cent coins. Mattox highlighted that the three-cent coin was used primarily for purchasing stamps, which is no longer a necessity.
A nationwide survey conducted by the Federal Reserve Financial Services, known as the Diary of Consumer Payment Choice, revealed that while more than 80% of respondents still keep cash on hand, usage patterns differ significantly across demographics. Older individuals and those earning less than $25,000 annually are more inclined to use cash for transactions.
Opinions about cash usage among Triangle residents varied. Chloe Nelson noted that she rarely uses cash, preferring to rely on her card for daily transactions. Hogan Randall mentioned that he only uses cash for tipping when he has some on hand. Laurel Burgess, on the other hand, admitted to using cash infrequently, mostly at farmer’s markets, and remarked that she often accumulates leftover coins from past transactions.
As these shifts in payment methods continue, the future of the penny—and potentially other coins—remains uncertain, prompting deeper discussions on the evolution of currency in a digital age.
