The humble penny might not be alone in its struggle for relevance. As inflation erodes purchasing power and digital payments dominate everyday transactions, could the quarter, that stalwart of vending machines and parking meters, be at risk?
Consider the arguments for and against keeping the quarter.
Quarters must go
Rising production costs make the quarter harder to justify. While the penny has long been criticized for costing more to mint than it’s worth, quarters are also becoming expensive to produce, according to the U.S. Mint’s 2024 Annual Report.
The combined costs of metal, manufacturing, and distribution continue to rise. As digital payments become more common, some policymakers question whether physical coins still belong in a modern economy.
Consumer habits have also changed. Contactless cards, mobile wallets, and app-based payments have replaced many of the quarter’s traditional roles. Places like laundromats, toll booths, and arcade machines increasingly rely on digital alternatives.
The pandemic pushed this shift further. Many businesses stopped accepting cash altogether and never went back. In today’s marketplace, coins are often left behind in drawers instead of circulating through daily transactions.
Quarters must stay
Even in an increasingly digital world, the quarter serves a practical role in everyday life. Many parking meters, especially in smaller cities and towns, still rely on coin payments because upgrading to digital systems is costly and slow to implement.
Quarters also power familiar machines like coin-operated laundries, car washes, and gas station air pumps. These services remain cash-based in many communities. For older adults, this small coin carries outsized importance. Many seniors are more comfortable using cash and depend on coins for budgeting, making exact change, and navigating local businesses they have frequented for decades.
The psychological comfort of tangible money matters too. For some, the quarter is not just a tool but a financial anchor. Its disappearance could add stress to already challenging transitions.
Small businesses, particularly in rural areas, often favor cash to avoid credit card fees. Quarters help them make change and keep operations simple. Losing them could mean unwelcome upgrades or payment friction for customers and shopkeepers.
The word in currency circles
Unlike pennies, which many argue have limited practical utility, quarters are still widely used across the United States. They remain common in parking meters, laundromats, vending machines, and transit systems. At 25 cents, the quarter hits a practical sweet spot: high enough in value to be useful, but still low enough to make cash transactions easy.
At present, there is no formal proposal to eliminate the quarter. However, other countries have changed their coin systems due to economic conditions. According to the Department of Finance, Canada stopped producing pennies in 2012, citing production costs and inefficiency. Australia phased out its one- and two-cent coins in the early 1990s, as the Royal Australian Mint noted, due to inflation and low use.
These changes occurred gradually. A 2023 report from the U.S. Government Accountability Office (GAO) explains that removing a denomination typically depends on several factors, including whether production costs exceed face value, how widely digital payments are adopted, and whether public opinion shifts toward using fewer coins.
There is no indication that the quarter faces immediate elimination. However, changes in payment habits and the rising cost of minting coins could, over time, influence future policy decisions.
Navigating a world with fewer coins
Smart consumers and businesses are already reducing their reliance on physical currency. Embracing digital payment options for small transactions offers convenience and flexibility as the use of cash continues to decline. For those less familiar with newer technologies, learning to use contactless cards and mobile wallets can make everyday purchases simpler and more efficient.
At the same time, there is no need to ditch coins entirely. Keeping a small stash of quarters for parking meters, vending machines, or local shops still makes sense, but stockpiling is likely unnecessary. The goal is to strike a balance between old and new, adjusting gradually based on what fits your needs.
If the quarter fades over time, it will unlikely vanish overnight. More plausibly, production would quietly slow while existing coins remain in circulation for years. That would give individuals, businesses, and institutions time to adapt without major disruption.
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