A Brief History of Challenge Coins

There are many examples of traditions that build camaraderie in the military, but few are as well-respected as the practice of carrying a challenge coin—a small medallion or token that signifies a person is a member of an organization. Even though challenge coins have broken into the civilian population, they're still a bit of a mystery for those outside the armed forces.

What Do Challenge Coins Look Like?

Typically, challenge coins are around 1.5 to 2 inches in diameter, and about 1/10-inch thick, but the styles and sizes vary wildly—some even come in unusual shapes like shields, pentagons, arrowheads, and dog tags. The coins are generally made of pewter, copper, or nickel, with a variety of finishes available (some limited edition coins are plated in gold). The designs can be simple—an engraving of the organization's insignia and motto—or have enamel highlights, multi-dimensional designs, and cut outs.

Challenge Coin Origins

It's nearly impossible to definitively know why and where the tradition of challenge coins began. One thing is certain: Coins and military service go back a lot farther than our modern age.

One of the earliest known examples of an enlisted soldier being monetarily rewarded for valor took place in Ancient Rome. If a soldier performed well in battle that day, he would receive his typical day’s pay, and a separate coin as a bonus. Some accounts say that the coin was specially minted with a mark of the legion from which it came, prompting some men to hold on to their coins as a memento, rather than spend them on women and wine.

Today, the use of coins in the military is much more nuanced. While many coins are still handed out as tokens of appreciation for a job well done, especially for those serving as part of a military operation, some administrators exchange them almost like business cards or autographs they can add to a collection. There are also coins that a soldier can use like an ID badge to prove they served with a particular unit. Still other coins are handed out to civilians for publicity, or even sold as a fund-raising tool.

The First Official Challenge Coin…Maybe

Although no one is certain how challenge coins came to be, one story dates back to World War I, when a wealthy officer had bronze medallions struck with the flying squadron’s insignia to give to his men. Shortly after, one of the young flying aces was shot down over Germany and captured. The Germans took everything on his person except the small leather pouch he wore around his neck that happened to contain his medallion.

The pilot escaped and made his way to France. But the French believed he was a spy, and sentenced him to execution. In an effort to prove his identity, the pilot presented the medallion. A French soldier happened to recognize the insignia and the execution was delayed. The French confirmed his identity and sent him back to his unit.

One of the earliest challenge coins was minted by Colonel “Buffalo Bill” Quinn, 17th Infantry Regiment, who had them made for his men during the Korean War. The coin features a buffalo on one side as a nod to its creator, and the Regiment’s insignia on the other side. A hole was drilled in the top so the men could wear it around their necks, instead of in a leather pouch.

The Challenge

Stories say that the challenge began in Germany after World War II. Americans stationed there took up the local tradition of conducting “pfennig checks.” The pfennig was the lowest denomination of coin in Germany, and if you didn’t have one when a check was called, you were stuck buying the beers. This evolved from a pfenning to a unit’s medallion, and members would "challenge" each other by slamming a medallion down on the bar. If any member present didn’t have his medallion, he had to buy a drink for the challenger and for anyone else that had their coin. If all the other members had their medallions, the challenger had to buy everyone drinks.

The Secret Handshake

In June 2011, Secretary of Defense Robert Gates toured military bases in Afghanistan before his impending retirement. Along the way, he shook hands with dozens of men and women in the Armed Forces in what, to the naked eye, appeared to be a simple exchange of respect. It was, in fact, a secret handshake with a surprise inside for the recipient—a special Secretary of Defense challenge coin.

Not all challenge coins are passed by secret handshake, but it has become a tradition that many uphold. It could have its origins in the Second Boer War, fought between the British and South African colonists at the turn of the 20th century. The British hired many soldiers of fortune for the conflict, who, due to their mercenary status, were unable to earn medals of valor. It was not unusual, though, for the commanding officer of those mercenaries to receive the accommodation instead. Stories say that non-commissioned officers would often sneak into the tent of an unjustly awarded officer and cut the medal from the ribbon. Then, in a public ceremony, they would call the deserving mercenary forward and, palming the medal, shake his hand, passing it to the soldier as a way of indirectly thanking him for his service.

Special Forces Coins

Challenge coins began to catch on during the Vietnam War. The first coins from this era were created by either the Army's 10th or 11th Special Forces Group and were little more than common currency with the unit’s insignia stamped on one side, but the men in the unit carried them with pride.

More importantly, though, it was a lot safer than the alternative—bullet clubs, whose members carried a single unused bullet at all times. Many of these bullets were given as a reward for surviving a mission, with the idea that it was now a “last resort bullet,” to be used on yourself instead of surrendering if defeat seemed imminent. Of course carrying a bullet was little more than a show of machismo, so what started off as handgun or M16 rounds, soon escalated to .50 caliber bullets, anti-aircraft rounds, and even artillery shells in an effort to one-up each other.

Unfortunately, when these bullet club members presented “The Challenge” to each other in bars, it meant they were slamming live ammunition down on the table. Worried that a deadly accident might occur, command banned the ordnance, and replaced it with limited edition Special Forces coins instead. Soon nearly every unit had their own coin, and some even minted commemorative coins for especially hard-fought battles to hand out to those who lived to tell the tale.

President (and Vice President) Challenge Coins

Starting with Bill Clinton, every president has had his own challenge coin and, since Dick Cheney, the vice president has had one, too.

There are usually a few different Presidential coins—one for the inauguration, one that commemorates his administration, and one available to the general public, often in gift shops or online. But there's one special, official presidential coin that can only be received by shaking the hand of the most powerful man in the world. As you can probably guess, this is the rarest and most sought-after of all challenge coins.

The President can hand out a coin at his own discretion, but they are usually reserved for special occasions, military personnel, or foreign dignitaries. It’s been said that George W. Bush reserved his coins for injured soldiers coming back from the Middle East. President Obama hands them out fairly often, most notably to soldiers that man the stairs on Air Force One.

Beyond the Military

Challenge coins are now being used by many different organizations. In the federal government, everyone from Secret Service agents to White House staff to the President's personal valets have their own coins. Probably the coolest coins are those for White House Military Aides—the people who carry the atomic football—whose coins are, naturally, in the shape of a football.

However, thanks in part to custom coin companies online, everyone’s getting in on the tradition. Today, it’s not uncommon for police and fire departments to have coins, as do many civic organizations, such as the Lions Club and the Boy Scouts. Even the Star Wars cosplayers of the 501st Legion, Harley Davidson riders, and Linux users have their own coins. Challenge coins have become a long-lasting, highly-collectible way to show your allegiance anytime, anyplace.