What happened to the Canadian penny? This question has been on the minds of many Canadians since the Royal Canadian Mint announced the discontinuation of the one-cent coin in February 2013. The decision to phase out the penny was met with mixed reactions, as it marked the end of a monetary symbol that had been a part of Canadian life for over a century.
The Canadian penny, also known as the cent, was introduced in 1858, making it the oldest coin in circulation in Canada. Over the years, it had become a symbol of the nation’s history and culture. However, the penny’s days were numbered due to its diminishing value and the rising cost of producing it.
The Royal Canadian Mint reported that it cost more to produce a penny than its face value. The cost of materials, labor, and distribution all contributed to the coin’s rising production costs. As a result, the mint decided to discontinue the production of the penny in 2012 and phase it out of circulation by 2013.
The decision to phase out the penny was not without controversy. Many Canadians were upset by the news, as they felt that the coin held sentimental value. Others argued that the penny was no longer necessary in a modern economy, and that the money saved by discontinuing its production could be used for more important programs.
In response to the public’s concerns, the government introduced a new policy that allowed businesses to round cash transactions to the nearest five cents. This policy aimed to minimize the inconvenience caused by the absence of the penny in daily transactions. However, it also sparked a debate about the fairness of rounding and whether it would disproportionately affect low-income consumers.
Despite the controversy, the Canadian penny has officially become a relic of the past. The Royal Canadian Mint has since produced a limited number of pennies for collectors and as souvenirs. The coin’s absence has prompted a shift in the way Canadians think about money and its value.
In conclusion, what happened to the Canadian penny is a story of change and adaptation. While the coin’s discontinuation was met with mixed emotions, it serves as a reminder of the evolving nature of currency and the importance of adapting to economic realities. The legacy of the penny will continue to be remembered by those who grew up with it, but its absence has paved the way for a new era in Canadian monetary history.
