Legend has it that challenge coins originated when a wealthy WWI
service member purchased medallions (or coins) for pilots in his squadron to boost morale and
memorialize their bond. One of the pilots valued the gift, placing the coin in a pouch around
his neck for safekeeping
The pilot was unfortunately shot down behind enemy lines,
captured, and stripped of all identification in an attempt to prevent him from escaping. The
pilot had extremely good luck, and was able to escape the enemy and get himself safely back into
friendly territory.
Having no identification, he was unable to prove his allegiance;
he was mistaken for an enemy saboteur and was slated for immediate execution. Desperate, he
pulled the challenge coin from the pouch and showed it, hoping that someone would recognize his
squadron’s insignia. With luck still on his side, his identification was confirmed and his life
saved.
Upon safe return to his squadron, it became tradition for all
members to carry their coin at all times. To this day, many military units, squadrons,
departments, and agencies actively use challenge coins as a form of identification.