Coinbase’s latest announcement argues that blockchain could make coins ‘useful’ again.
Moving the US dollar to a “well-designed blockchain” could make billions of “crowded” coins valuable again in the country, according to a new advertising campaign from crypto exchange Coinbase.
The campaign comes as part of National Lost Penny Day on Feb. 12, an annual day that celebrates the creation of the coin and encourages Americans to find lost pennies around their homes — a tradition that began in 1995.
However, Coinbase took the opportunity to argue that the seemingly stable coin would help “move money forward” and save people and small businesses from the costs of legacy fiat systems.
In the year In a Feb. 12 X post, Coinbase revealed that $1.2 million worth of coins are lost annually, which is nearly three times the cost of producing a single coin.
A follower X Spaces zero knowledge consultancy founder Austin Campbell argues that traders, in particular, can reap the benefits of “quick settlement, low-cost payments” when stablecoins fiat should make their way to the blockchain.
“Most merchants operate on very small profit margins, many small consumer businesses have small margins and it makes sense for them to add even a penny to their improved pricing structure.
A one-minute spot shows us a coin from former US President Abraham Lincoln pleading for the digitization of coins.
Coins… costing them $1.2 million are missing every year. It costs about 3x to make one. And it's been 167 years since it was last updated.
Fortunately, cryptocurrency can move forward. Right, Abe? pic.twitter.com/FN8jtnPzj3
— Coinbase ️ (@coinbase) February 12, 2024
“Being on the coin meant something. […] Even though it's still technically money, it's worthless for petty ambitions that get thrown away like garbage 120 million times a year,” said an animated Penny Lincoln while vacuuming.
“Really think I paid for stuff. Between people, you travel the world instantly without payment or conflict. Old Abe wants to be good enough to be money again,” he added.
“Get me off this scrap metal, make me digital.”
Meanwhile, the US Mint will resume minting coins in 2024, despite a decade-long effort to end operations. As of 2017, there are 150 billion coins in circulation worth an estimated $1.5 billion.
Related: Low Bitcoin ETF Fees May Be Bad News for Coinbase
That said, Campbell, a self-proclaimed “stablecoin philosopher,” admits there are still technical and logistical limitations to moving finance online.
“The most difficult part is the interface between an interface that is open 25% of the week in terms of calendar hours and a day or two-day system compatible with a 24/7 live blockchain to receive and withdraw money,” he explained.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
