The penny is gone from production. What happens next?

PALM SPRINGS, Calif. (KESQ) The U.S. Treasury has stopped producing new pennies, ending more than two centuries of minting the one-cent coin.

Officials say the move comes as production costs climbed to about 3.69 cents per penny, far more than the coin’s one-cent value. Existing pennies remain legal tender, and billions are still circulating nationwide.

As the supply of pennies gradually shrinks, some businesses could begin rounding cash purchases to the nearest five cents, while electronic payments would still be processed to the exact cent.

The change is also sparking a new question: could the nickel be next?

The U.S. Mint reports it costs more than 13 cents to produce a nickel, raising debate about the future of America’s smallest coins.

News Channel 3 spoke with local business owners and people across the Coachella Valley about whether they still use pennies and what they think about the possibility of rounding prices at the register.