SOME of the largest financial institutions in the United States could be quietly planning moves away from physical cash.
Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo may dive into cryptocurrency amid the impending removal of the penny.
AlamyJPMorgan Chase and other top banks are looking toward cryptocurrency (stock image)[/caption] GettyAmericans could soon see a new form of digital payment as a result (stock image)[/caption]The banks are considering the option of a joint “digital dollar,” per PYMNTS.
It would be operated through a stablecoin, notably a form of cryptocurrency that’s tied to a “traditional” currency, which, in this case, would be the US dollar.
Together, they’d work to use some existing networks to facilitate transactions using’ ‘the digital dollar token, such as Early Warning Services, which operates Zelle, and The Clearing House.
The financial institutions seek to create a new infrastructure for the stablecoin so it’s more regulated and secure.
Then it could be used consistently by consumers for efficient digital payments.
So far, stablecoin in the United States doesn’t have a solid regulatory framework, which is why the banks remain exploring their options as to how they could instill one.
Bank of America, JPMorgan Chase, Citigroup, and Wells Fargo are looking to create effectively the opposite of the original ethos behind cryptocurrency, which was to basically remove the institutional aspect of financial transactions while still keeping them secure.
Bentzi Rabi, CEO and co-founder of Utila, a crypto digital asset operations platform, said this move from top banks was inevitable.
“When you think about the needs of every FinTech or payments company, or a bank that wants to enter the [stablecoin] space, they need secure infrastructure, from the creation of assets, such as tokenizing them, to holding them, and of course moving them,” Rabi told PYMNTS.
“Everyone will enter the stablecoin era in the end.”
Should major banks officially get involved in stablecoin, it could bring about serious changes in the crypto space and to the future of physical currency in general.
GONE FOR GOOD
News of the potential stablecoin also comes as the Treasury Department announced this month that it will completely cease production of pennies by 2026.
The US Mint also recently placed its last order of penny planchets and will completely cease making them once they’re used up.
There won’t be enough pennies left in circulation to effectively use them in everyday business transactions.
Rare coins
You may be holding something valuable in your wallet. Check out these articles on rare coins to see if you may have a treasure hidden deep in your pockets.
Rare Lincoln penny sells for $201 This buffalo nickel sold for $1,165 1971 Eisenhower silver coin sells for $264,000 Lincoln double die obverse penny sells for $2,000 Half cent sells for $3,383 Rare nickel sells for $1,956 on eBay 1889 CC Morgan Silver dollar coin sells for $1,850 Lincoln 1992 penny can be worth up to $25,000 Standing Liberty quarter sells for $565 Lincoln coin minted in 2020 sells for $525That means the coin will truly be no more soon.
But, why take it away?
TOO COSTLY
President Donald Trump and former President Barack Obama have criticized keeping the penny around because it costs far more to produce it than it’s actually worth anymore.
It currently costs four cents to make a penny, taking away taxpayer money that could be used elsewhere.
At least 54% of the largest coin shipments in 2024 were also pennies, with the US Mint citing a loss of about $83.5 million on the 3.2 billion produced.
That’s the 19th consecutive year the government has lost money making pennies.
It’s also not the first time a coin has been discontinued in the United States.
Back in 1857, the half-cent was removed by Congress.
Still, there are some exceedingly rare versions of the penny that sell for thousands, and will likely be worth far more after production stops.
There’s a Lincoln cent worth $500,000 still floating around in circulation, but it must be from a key year.
Another is worth $240,000.
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