How the Challenge Coin Tradition Started

There are about 1.3 million active-duty military members in the United States. Are you one of them? If so, you may know a thing or two about challenge coins. 

If you’re brand new, however, you might still be in the dark. What is a challenge coin? How did the tradition of the challenge coin start?

Let’s investigate it together. Read on for a brief overview of the history of challenge coins in the military.

What Are Challenge Coins? 

So what are challenge coins anyway? If you’re in the United States military, you likely already know (because they’re military coins). If not, here’s a quick rundown. 

A challenge coin is a small medallion that bears a symbol or insignia of a specific organization or group. They’re often used as a symbol of membership (though nowadays that’s more for show and for the sake of tradition rather than actual proof). 

People often give each other challenge coins as rewards for achievements or as mementos for specific events. 

So what’s the “challenge” part of the challenge coin? In modern times, it’s mostly for fun. 

When someone displays their challenge coin, the other members of the group are all supposed to present theirs as well. If someone is unable to present their coin, they have to buy a drink for the challenger (and often, for the other people in the group who presented their coins). 

If everyone has their coin, then the challenger buys the drinks. 

Certain coins can outrank each other. Basic marine corps challenge coins can be “outdone” by military officer coins, for example.

Challenge coins are a way to encourage unity and levity amongst members of the military. Non-military challenge coins exist as well, but they’re far less common. 

Ancient Times

There’s evidence to suggest that some form of challenge coin existed in ancient Rome. 

Research suggests that when Roman soldiers did well, they would receive their normal wages alongside a special extra coin. This coin may have a different design or be made out of a different material, setting it apart from normal money. 

Soldiers would keep those coins as mementos rather than spend them.

Many other cultures likely also had similar traditions, but we know the most about Rome. It’s not uncommon for soldiers to get special badges or medallions for a job well done. 

Potential Origin Story #1

So what about modern challenge coins? 

Well, there are a few potential origin stories that may all be possible. It’s unclear as to which one is the “right” one. The first begins during World War I. 

Allegedly, during the war, an officer gave his soldiers beautiful bronze medallions as a reward for their excellent work and commitment to their country. 

One soldier was captured by German soldiers and he had most of his belongings taken away from him. He managed to escape to France, but the French soldiers believed that he was a spy. He was sentenced to death.

However, he had one belonging left: his coin from the officer. He presented it to prove that he wasn’t a spy, and that coin saved his life. These coins were later turned into necklaces (similar to dog tags) for easier proof of identity.

Nowadays, it’s not appropriate to drill a hole into a challenge coin to turn it into a necklace unless you don’t plan on using it for a challenge. Some people argue that it ruins the spirit of the challenge because it’s always on your person, so you’d never have to go out of your way to present it. 

Potential Origin Story #2

But is that story true? Who knows for sure? There are other potential origin stories as well.

Some people believe that challenge coins came into popularity amongst American soldiers in Vietnam. 

At an army-run bar, the owners didn’t want non-soldiers to come in and spend time there. If a non-military person entered, they had to buy a round for the soldiers. To prove their identity, they would use a symbol.

At first, those symbols were things like bullets, but they later got more extreme. Bigger weapons, grenades, and other dangerous items were finding their way into the bar. Then, people in the military started carrying coins instead as a safer alternative. 

This aligns with how people use challenge coins today. This is a realistic origin of the history of the challenge coin.

Potential Origin Story #3

So what if neither of those origins is right? There is a third option. 

Some people believe that the 11th special forces group took old coins and had them stamped with new emblems to represent the military. They would give those custom coins to people who displayed excellent work on the job. 

This idea grew in popularity, and eventually, custom coins were being minted for the same purpose so they no longer had to stamp old coins and destroy valid currency. 

This story is less exciting, but not less realistic. 

What’s the Real Origin of the Challenge Coin? 

In reality, we may never know how the challenge coin actually originated. Nowadays, it’s a fun tradition to inspire unity among members of the military.  Challenging each other with their coins is fun and it’s a good way to show that they’re all part of a group. 

While this may not have been the original purpose of the coins, they’ll likely continue to be used in this way for decades to come.

For more helpful answers to some of your most-asked questions, check out the rest of the site.