The US penny costs 1.8 cents to make, costing the government over 100 million per year to create. The US should follow in 17 other nations' footsteps, including recently Canada's, and discontinue production of the penny. The Unites States military already doesn't use the penny, rounding every transaction to the nearest five cents. The US has already gotten rid of a denomination before, getting rid of the half-penny in 1857, which then had the purchasing power of more than today's dime.
The US should get rid of the penny and round each transaction to five cents. Pennies should still be legal tender, but banks should turn them into the US Mint to be melted.