Coinbase Ad Suggests Blockchain Could Revive the Penny’s Value
Through a creative advertisement, Coinbase suggests that blockchain technology could breathe new life into billions of overlooked pennies. With an animated former U.S. President Abraham Lincoln, Coinbase’s latest campaign is a conversation starter about the future of money.
Quick Take:
- Coinbase’s ad campaign features an animated Abraham Lincoln on a penny, advocating for digital transformation.
- The campaign highlights the inefficiency of pennies and proposes blockchain as a solution to make them valuable again.
- Stablecoins could offer instant, low-cost payments, benefiting small businesses and reviving the utility of pennies.
The advertisement was released on National Lost Penny Day on February 12. The day is dedicated to rediscovering and appreciating the often-forgotten penny. Coinbase has launched a unique campaign.
The penny…
$1.2 million worth of them go missing every year.
It costs nearly 3x the value of one just to make one.
And it’s been 167 years since its last update.
Thankfully, crypto can move the penny forward.
Right, Abe? pic.twitter.com/FN8jtnPzj3
— Coinbase 🛡️ (@coinbase) February 12, 2024
An animated Abraham Lincoln pleading for a digital transformation appears in the advertisement. According to Coinbase, moving the U.S. dollar onto a well-designed blockchain could make the billions of “clunky” pennies in the U.S. valuable again.
Coinbase Sheds Light on Pennies’ Inclusion in the Blockchain Space
This argument is not just about preserving a piece of metal but about revolutionizing how small denominations can play a role in the digital economy. By transitioning to stablecoins and blockchain technology, coins could once again play an important role in financial transactions, offering merchants and consumers “instant settlement, low-cost payments.”
Coinbase highlighted that $1.2 million worth of pennies are lost every year. The cost of minting these coins is nearly three times their face value. Therefore, digital transformation offers small businesses the potential for improved margins while reducing inefficiencies.
The Coinbase ad highlights the tangible benefits that blockchain and stablecoins could offer. Instant transactions, reduced fees, and the elimination of physical currency’s logistical hurdles could help small businesses operate on thin margins.
The animated Lincoln in the ad dreams of a world where pennies are not just physical tokens but active participants in the global digital economy. However, the transition to a fully digital financial system is not without its challenges.
Austin Campbell, from Zero Knowledge Consulting, acknowledges the technical and logistical hurdles in moving traditional finance online. The current financial system suffers from limited operational hours and delayed settlements. It is quite different from the always-on, instant nature of blockchain technology.
Campbell added,
“The hard part is the interface between a system that is open in terms of calendar hours about 25% of the week and settles on a one-day or two-day forward basis, matched up with a 24/7 live blockchain that I need to get money in and out of.”
Bridging the gap between the traditional finance sector and modern digital fintech requires technological solutions and a shift in how we perceive and use money. Therefore, Coinbase’s campaign taps into a broader conversation about the future of money.
While the U.S. Mint continues to produce pennies, with an estimated 150 billion in circulation, the question of their practicality and value persists. Through its whimsical approach, the ad asks if blockchain can redefine not only high-value transactions but even the smallest pieces of currency.
The ad celebrates National Lost Penny Day while imagining a financial ecosystem where every cent counts by proposing the digital resurrection of the penny. The future of pennies may lie in their ability to adapt to a digital world in which technology and tradition combine.
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Afroz Ahmad
