Around three million 50p coins specially made to commemorate Brexit - which was due to take place on October 31 - are to be melted down.
The limited edition currency will now be recycled by the Royal Mint in Llantrisant after the UK's scheduled departure from the European Union was pushed back following Prime Minister Boris Johnson's formal acceptance of an extension until January 31, 2020.
The coins were due to display the words 'Peace, prosperity and friendship with all nations', along with the planned October 31 exit date stamped on the flip side.
This the second time the coins have been delayed. The initial release was due to take place in March thereby marking yet another humiliating step down for the Government.
The Treasury has refused to say how much the original production of the coins cost. A spokesman insisted that the cost of designing and producing the commemorative coins is met by the Royal Mint out of its own revenues and at no cost to the taxpayer.
He added: "We will still produce a coin to mark our departure from the European Union, and this will enter circulation after we have left."
According to the Royal Mint website, precious metals, such as 50p coins, are sorted and shredded before being melted down. Metals are then purified and solidified before being turned into new products.
Former chancellor Philip Hammond had planned a limited edition of around 10,000 commemorative coins to be sold to collectors for £10 each.
His successor Sajid Javid later revised the proposal for the coins to be produced for mass circulation in time for the end of this month.
