Coinbase has launched a creative advertising campaign suggesting that blockchain technology could breathe new life into the seemingly obsolete U.S. penny.
This initiative, unveiled in conjunction with National Lost Penny Day on February 12, spotlights the potential of stablecoins and blockchain to revolutionize the traditional monetary system.
Leveraging National Lost Penny Day for Blockchain Advocacy
National Lost Penny Day, celebrated since 1995, encourages Americans to scavenge for forgotten pennies.
Utilizing this day, Coinbase posits that transitioning the U.S. dollar to a “well-designed blockchain” could render billions of pennies, currently considered cumbersome, valuable once more.
The campaign underscores the notion that stablecoins can advance monetary transactions, benefiting individuals and small businesses burdened by the costs associated with legacy fiat systems.
Highlighting the Economic and Environmental Costs of Pennies
In a message shared on X (formerly Twitter), Coinbase highlighted that Americans lose pennies worth $1.2 million every year, with the cost of manufacturing a penny nearly tripling its face value.
This inefficiency begs the question of whether there’s a more sustainable, economical approach to currency.
Advocating for Merchant Benefits Through Stablecoins
The campaign includes a discussion led by Austin Campbell, founder of Zero Knowledge Consulting, on the advantages merchants could gain from the adoption of stablecoins, such as instant settlement and low-cost payments.
Campbell points out that even minimal savings from improved cost structures can significantly impact businesses operating on thin margins.
Coinbase’s Animated Campaign Features Lincoln on a Penny
The centerpiece of the campaign is a one-minute animated ad featuring former U.S. President Abraham Lincoln, depicted on a penny, making a heartfelt plea for digital transformation.
The portrayal of Lincoln humorously and poignantly advocates for pennies to regain their utility in the digital age, emphasizing the potential for instant global transactions without fees or friction.
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
Future of Pennies Amid Digital Currency Evolution
Despite ongoing discussions about phasing out the penny due to its diminished utility and the costs associated with its production, the U.S. Mint plans to continue minting pennies in 2024.
With an estimated 150 billion pennies in circulation, this campaign raises important considerations about the future of physical currency in an increasingly digital world.
Navigating Technical and Logistical Challenges
Campbell, referring to himself as a “stablecoin philosopher,” acknowledges the existing technical and logistical hurdles in integrating traditional financial systems with blockchain technology.
The challenge lies in bridging the gap between the conventional banking system, which operates with limited hours and delayed settlements, and the round-the-clock, instantaneous nature of blockchain transactions.
