Major U.S. banks, JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are quietly preparing to dive into the digital dollars currency game, and the timing couldn’t be more symbolic.
While they’re building a potential digital dollar through a regulated stablecoin, the government is pulling the plug on the U.S. penny, which will be completely discontinued by 2026.
This joint bank project is expected to use existing networks like Early Warning Services (the company behind Zelle) and The Clearing House to move funds digitally. The idea is to make stablecoin transactions mainstream by offering an easier, more secure way for people to pay digitally.
And this isn’t just a new tech experiment, it’s a huge pivot. The banks are aiming to build infrastructure that’s totally opposite to Bitcoin’s original idea of anti-establishment finance. Instead of decentralization and anonymity, this bank-issued digital dollar would be regulated, centralized, and heavily secure.
So far, the U.S. still lacks clear stablecoin laws, and that’s the biggest hurdle. But these banks want to be ahead of the curve. By creating a digital dollar that ticks all the regulatory boxes, they’re hoping to shape the entire future of digital payments.
According to Bentzi Rabi, CEO of crypto infrastructure platform Utila, this move was bound to happen. “Every bank and fintech company that wants in on stablecoin needs secure infrastructure, whether it’s for creating assets, storing them, or moving them,” Rabi told PYMNTS. “Everyone will enter the stablecoin era in the end.” That means even the biggest banks see the writing on the wall, digital money is coming.
And while banks get ready for this digital future, the U.S. penny is being phased out for good. The Treasury Department confirmed that production of pennies will stop completely by 2026, and the U.S. Mint has already placed its last order for penny planchets. Once those are used up, that’s it, no more new pennies.
The reason is simple: the penny costs too much to make. Each one costs four cents, meaning it literally wastes taxpayer money. Former Presidents Barack Obama and Donald Trump have both criticized it for this exact reason. In 2024 alone, the Mint produced 3.2 billion pennies and lost $83.5 million doing it. This marks the 19th year in a row that penny production has lost money.
At least 54% of the biggest coin shipments in 2024 were just pennies, and with circulation dropping, they’re no longer practical for everyday use. It’s the same story that got the half-cent coin scrapped in 1857. History just repeats.
But before you toss your change, check it. Some rare pennies are worth thousands, and they’re only going to get more valuable after production stops. One Lincoln double die obverse penny went for $2,000, and a 1992 Lincoln penny is worth as much as $25,000. A 1971 Eisenhower silver coin sold for $264,000, and even a Lincoln coin minted in 2020 went for $525. The rare coin market is heating up big time.
So, while the banks move toward a fully digital stablecoin future, the last pieces of old-school currency, like the penny, are quietly being retired. It’s a big shift. Your money is about to look, feel, and work totally differently. Whether you’re into crypto or not, this is the beginning of something huge.
Quick Reference Table of Key Facts
| Topic | Details |
|---|---|
| Banks Involved | JPMorgan Chase, Bank of America, Citigroup, Wells Fargo |
| Digital Dollar Type | Stablecoin (crypto pegged to USD) |
| Networks Used | Early Warning Services (Zelle), The Clearing House |
| Goal | Regulated, secure infrastructure for mainstream digital payments |
| Stablecoin Regulation | Still lacking in the U.S.; banks aim to build their own secure framework |
| Expert Quote | “Everyone will enter the stablecoin era”-Bentzi Rabi, CEO of Utila |
| Penny Production Ends | By 2026, after the final planchet order is used up |
| Cost to Produce Penny | 4 cents per coin |
| 2024 Penny Stats | 3.2 billion produced, $83.5 million loss, 19th year of net losses |
| Presidents Against Penny | Barack Obama, Donald Trump |
| Historical Comparison | Half-cent discontinued in 1857 |
| Valuable Coins | Lincoln penny ($25K), Eisenhower ($264K), Buffalo nickel ($1,165), more |
The penny can live on! Here’s how.
Revalue all pennies to 5 cents. They can circulate along with existing nickels. So there won’t be any immediate need to mint additional nickels at a cost of 14 cents each.
Billions of dormant pennies will reenter circulation with their new increased value instead of sitting in jars and drawers.
Billions of $$ will be created.
Billions of $$ will be saved.
MAKE PENNIES GREAT AGAIN!