The official reason given is that they simply cost too much to produce, that Canadians were hoarding pennies rather than using them, and the environment. On February 4, 2013, Canada officially stopped using the penny. They stopped production and distribution, and they asked all businesses to follow a new rounding tax. To this day, the government is being sent pennies to recycle into new things. They are sorted, and then melted down and sold for building projects and electronics. So far, they’ve gotten 4 billion pennies. If people go directly to the mint, they receive a credit for the pennies. Otherwise, they can give it to any bank and donate it to be sent to the mint by them. It was an almost seamless transition, with no real downside. The economic effects so far have been negligible, if all positive. The rounding tax will be explored later, as well as how Canada handled charities that once depended on
The official reason given is that they simply cost too much to produce, that Canadians were hoarding pennies rather than using them, and the environment. On February 4, 2013, Canada officially stopped using the penny. They stopped production and distribution, and they asked all businesses to follow a new rounding tax. To this day, the government is being sent pennies to recycle into new things. They are sorted, and then melted down and sold for building projects and electronics. So far, they’ve gotten 4 billion pennies. If people go directly to the mint, they receive a credit for the pennies. Otherwise, they can give it to any bank and donate it to be sent to the mint by them. It was an almost seamless transition, with no real downside. The economic effects so far have been negligible, if all positive. The rounding tax will be explored later, as well as how Canada handled charities that once depended on