Coinbase Suggests Blockchain Could Revive 'Lost' U.S. Pennies in New Ad Campaign
Summary:
Coinbase's ad campaign during National Lost Penny Day suggested turning the U.S. dollar to an effectively managed blockchain could make the billions of seemingly worthless pennies useful again. They voiced this concept through an animated penny with the image of Abraham Lincoln, advocating for penny digitization. The campaign also stressed the potential benefits to merchants, owing to instantaneous, low-fee transactions offered by stablecoins. Despite this, the challenge of transitioning traditional fiat currencies to a 24/7 operating blockchain system was acknowledged.
Coinbase, a cryptocurrency exchange platform, launched a new advertising campaign during National Lost Penny Day on February 12, suggesting that transitioning the American dollar to an effectively managed blockchain could make the billions of seemingly worthless pennies in the U.S. useful once more. The annual event, which began in 1995, highlights the invention of the penny, promoting a hunt for lost pennies around the house. Seizing this chance, Coinbase posits that stablecoins can spur a financial evolution and shield individuals and small firms from the financial burden of outdated monetary systems. A Coinbase post on February 12 states that each year there's $1.2 million in lost pennies and the cost of producing one penny is nearly three times its value.
In a follow-up feature, founder of Zero Knowledge Consulting, Austin Campbell, insisted that retailers could especially profit from instantaneous, low-fee transactions offered by stablecoins if traditional fiat currencies transition to blockchain. He argued that for a lot of small businesses operating on thin margins, even a tiny increase in that margin, brought about by improved cost structures, could be significant.
The ad features an animated penny featuring the likeness of former president Abraham Lincoln, advocating for the digitization of pennies. The concept being that these lost pennies – 1.2 million dollars' worth every year – could regain their use through cryptocurrency, even if it is three times more costly to produce a penny than its actual value.
Despite years-long efforts to halt penny creation, the U.S. Mint persists in producing them in 2024. As of 2017, it's estimated that there are 150 billion pennies in circulation, with a total value of $1.5 billion.
However, Campbell, who identifies as a "stablecoin philosopher", recognizes the ongoing technical and logistical challenges in moving fiat currencies to blockchain systems, particularly the discrepancy in operating hours between traditional financial systems and the 24/7 operation of blockchain networks.
Published At
2/13/2024 8:09:44 AM
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