One of the more misunderstood traditions of the US military is also one of the youngest and that is the challenge coin. Most people, if pushed to describe what it means, would guess that it is given in commemoration of completing some sort of challenge. There are certainly some custom military coins that fit that bill but the vast majority of the challenge coins out there are unit coins. It can be argued, of course, that being a part of any unit in the armed forces represents the completion of a challenge that is not where the name comes for or truly describes how the term is used now.

There are several stories as to the origins of the challenge coins but what they all have in common was that it was through the use of a stamped coin a serviceman was able to establish that they where part of US military. In general, people that severed in the Air Force will believe the Air Corp story while those in the Navy are more inclined to believe the Marine story and so one but they all served the same purpose.

Nowadays they are carried by members of all branches of service, usually with their unit on one side. They are carried in an unofficial capacity but a certain set of rules have seem to become standard. One is that they are never carried in a wallet. Two is that the coin can not be disfigured in any way or it can not be used as a challenge coin anymore (more on that in a bit). By disfigured it means it can not be used as a necklace, which would rewire a hole to be drilled in it, or as a belt buckle, which would require that it be mounted.

Why, besides its namesake, is it called a challenge coin? It is because, unofficially, the coin is to be carried at all times. At any given time a member of the unit can challenge another member to produce his coin. This most commonly happens at a bar. If the serviceman challenged can not produce the coin they have to buy the next round of drinks. This, however, is a double edged sword. If they can produce the coin the next round falls on to the one who issued the challenge.