The history of Challenge Coins is murky. Some say it goes back to the Roman Empire when military commanders rewarded their soldiers with coins struck to salute their valor. Others think it is rooted in an incident which occurred in an Allied fighter squadron in WWI. Allegedly, a pilot was shot down, bailed out, and was later captured by friendly ground forces. With no papers to identify himself, his captors were intent on executing him as a spy. Fortunately, he was wearing a pouch around his neck containing a coin struck with his squadron emblem…an Allied Squadron emblem… and which had previously been given to the unit pilots to instill a sense of camaraderie. With that fortuitous identification he was released. Other squadrons then began producing their own coins…or so that story goes. Another traces the coin’s origin to the Vietnam War during which they were awarded by officers to members of their units to acknowledge exceptional efforts made on behalf of the combat team.
As for the term, CHALLENGE, that is rooted in modern times. As the coin usage became more widespread, members of different units would ‘challenge’ each other over drinks to produce their unit coin for trade. If someone failed in this challenge, they would have to buy the next round of drinks. While that might still be a practice in some places, I’ve noticed the exchange of a coin to another person is now most commonly done in a handshake.
It seems certain the date and circumstance at which these coins entered the historical record will forever remain unknown, but there appears to be no question they originated in military organizations and were used for individual recognition, and to advance a sense of pride, camaraderie and esprit de corps within combat units.
My own personal experience with Challenge Coins originated in my NASA years. I never saw them in my active-duty USAF years, including Vietnam. I only became aware of them when I was presented with a coin after speaking at a military function.
I’ve also noticed Challenge Coins in displays at various airport USOs. Some of the larger USOs have walls of hundreds of Challenge Coins displayed.
Their usage has now expanded to other government agencies. I have one from the FAA. And you can find them traded among balloonists at the Albuquerque International Balloon Fiesta. At a 2025 speech to a for-profit company, I was presented with that company’s own Challenge Coin. I suspect there are now thousands of unique coin designs in circulation from all manner of teams.
Because of my exposure to the Challenge Coins of others and wanting to have something unique to share with family, friends and at special functions, I created my own coins. I ordered enough to offer a portion of them for sale on my website.
