Challenge coins in the military go by various names, such as unit coins, commander’s coins and many more. Regardless of the name, the coin identifies the person who owns it, as a member of a particular unit and is generally seen as a symbol of pride and respect. In today’s military, most all military units create their own coin, which the members of the unit carry. Commanders many times use specially minted coins to help improve morale, foster unit esprit and honor the service and hard work of the men and women serving under them. Most of the coins are very intricately designed, sometimes very colorful as well. All are something that the Troops receiving them are very honored to own. Not always are the coins round, but may be in the shape of a unit crest, or another identifying symbol of a particular unit.

The history of coins or medallions in military forces, used for recognition or identification dates back to the Roman Empire, where coins were presented to warriors as a means of rewarding an achievement or action… much like the way medals are used today in the modern US Military. A more recent story about the history of military coins dates back to the Boar War in 1899-1902. This was a war of independence between the British and the Colony of South Africa. In that war, many Soldiers were contracted Soldiers of Fortune, who served valiantly with the British. These Soldiers never received any sort of honor or recognition for their many valorous actions. It’s been told that the Regimental Sergeant Majors felt that this was wrong and took measures to change that. They apparently snuck into the tents of officers who they felt were undeserving recipients of a medal, cut the medals from the ribbons on which they hung and later, in a ceremony before the regiment, the medals were presented to those they felt deserving.

Each Soldier received a handshake. When they clasped hands, the medal was discreetly palmed into the hand of the recipient. There are many other stories that tell of such handshake rituals, where the Soldier has the coin palmed into their hand, without the appearance of any sort of bonus or reward being bestowed upon them.

Another story, which dates back to World War I, is of an American Pilot who was shot down behind enemy lines in Germany, somewhere near the French border. A member in his squadron has medallions specially made for their unit. The pilot was captured by the Germans. All of his personal items save for the medallion which he had in a pouch around his neck. He eventually escaped and changed into civilian clothing and made his way into France. When he arrived at a French outpost, the soldiers there didn’t recognize him. He was almost executed until he showed them his medallion, which saved his life.

During the Vietnam war, several more stories have been told about Military Challenge Coins. One tells of elite fighters who had a tradition of carrying a single special bullet from their weapon, usually carried in their hip pockets. The idea was, if captured they could use it to kill themselves. Soldiers could be challenged to show their bullet. If they couldn’t, they would buy a round of drinks. If he did produce it, then the challenger bought the round of drinks. According to the story, Soldiers began carrying bigger and bigger rounds until finally due to safety issues, they were ordered to carry coins as a substitute for the live rounds.