Besides the opportunity cost of not reclaiming pennies for recycling, another issue is that pennies, more so than any other denomination, fall out of circulatio

Besides the opportunity cost of not reclaiming pennies for recycling, another issue is that pennies, more so than any other denomination, fall out of circulation quickly. That's because people don't tend to keep them in their pocket like most loose change; they end up in a jar somewhere. So by deciding not to mint new coins, you're still signing the penny's death warrant. But you condemn it to a slow, messy death. Stores gradually aren't able to acquire the pennies they need to make change on purchases, as the existing coins fall out of circulation. Eventually the day comes where you need to change the way cash transactions work, because it makes no practical sense to consider the penny a currency. So why delay? Instead, the government flipped the off switch and gave the penny a quick death. Of course, Canadians can still take their pennies to the bank and trade up for a valid denomination.