Why Did They Get Rid of the Penny
Governments remove the penny when production costs exceed its face value, circulation declines, and rounding becomes practical. The United States has debated eliminating the one cent coin for decades because minting each penny costs more than one cent.
What Happens When the Penny Is Phased Out
When a country phases out the penny, cash transactions are rounded to the nearest five cents. Electronic payments and checks usually remain exact. Studies from the United States Mint and the Royal Canadian Mint show that rounding has a negligible effect on most consumers.
Which Countries Already Removed the Penny
Several countries have stopped using low value coins, including Canada, Australia, New Zealand, and the United Kingdom. Canada stopped distributing the one cent coin in 2012, and businesses round cash totals accordingly. More details are available at https://www.mint.ca/en/coin-and-collection/coin-guide/coins/circulation-coins/one-cent-coin
