TL;DR
- Coinbase’s campaign highlights the annual loss of $1.2 million worth of pennies in the US, and the high cost of producing this currency.
- Coinbase promotes the adoption of blockchain technology to revitalize the paper of the penny, allowing for instant and affordable transactions that would benefit individuals and small businesses.
- Coinbase’s animated ad features a penny with the image of Abraham Lincoln advocating for its digital conversion, highlighting the potential of blockchain to transform low-value currencies in the modern economy.
The role of the penny in the US economy has been the subject of debate in recent times, with Coinbase, a major cryptocurrency platform, launching an advertising campaign highlighting the possible revitalization of this low-value currency through blockchain technology.
According to Coinbase, about $1.2 million worth of pennies are lost each year, a significant figure that reflects the trend of consumers dumping low-value coins.
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
Furthermore, the cost of manufacturing a penny is approximately three times its face value, suggesting economic inefficiency in the production of these coins.
The situation is further complicated by the fact that the design and face value of the penny have not changed in 167 years, making it an economic relic that has not adapted to modern changes.
Coinbase suggests blockchain technology could be the solution to revitalizing the penny’s role in the economy
By moving the US dollar to a well-designed blockchain, billions of “clumsy” pennies could be made useful in the country.
The potential of stablecoins and blockchain infrastructure to address the challenges associated with traditional physical currencies is highlighted in Coinbase’s advertising campaign.
They argue that instant, low-cost transactions could benefit individuals and small businesses, reducing costs associated with traditional fiat monetary systems.
This could be especially beneficial for merchants, who operate on tight margins and could see an increase in their profit margins thanks to an improved cost structure.
The ad campaign features a one-minute ad featuring an animated penny with the image of former United States President Abraham Lincoln calling for pennies to be converted into digital form.
This creative approach aims to raise awareness of the problems associated with traditional physical currencies and promote the adoption of solutions based on cryptography and blockchain.
Although there are technical and logistical challenges on the path to a fully digital financial infrastructure, Coinbase’s message is clear: blockchain technology has the potential to transform the role of low-value currencies in the modern economy, offering benefits such as more efficient transactions. and reduced costs.
