Coinbase, the prominent cryptocurrency exchange, has rolled out a bold ad campaign advocating for the digitization of the U.S. penny, featuring an animated rendition of former President Abraham Lincoln.
This initiative coincides with National Lost Penny Day, observed annually on February 12th, which commemorates the creation of the penny while encouraging Americans to retrieve lost pennies.
However, Coinbase’s campaign takes a unique angle, proposing that transitioning the U.S. dollar onto a blockchain could unlock the latent value of these seemingly obsolete coins.
Coinbase’s argument for digitization
According to Coinbase’s campaign, moving the U.S. dollar onto a “well-designed blockchain” can breathe new life into billions of pennies currently deemed as ‘clunky’ and largely disregarded.
The exchange contends that stablecoins, digital currencies pegged to fiat currency, could revolutionize financial transactions by offering instant settlements and low-cost payments. This move, Coinbase asserts, would alleviate the burden of legacy fiat systems on individuals and small businesses, saving considerable costs associated with manufacturing and handling physical pennies.
In a one-minute spot, an animated portrayal of Abraham Lincoln, symbolized by the penny, passionately implores for the conversion of pennies into digital form. Lincoln, once a revered figure gracing the penny, laments its diminished significance, likening it to “useless barter for petty wishes” and portraying it as being discarded en masse.
The animated penny envisions a future where it could seamlessly circulate among people, transcending borders without incurring fees or friction, thereby reclaiming its status as a meaningful form of currency.
Continued production despite declining demand
Despite declining demand and persistent efforts to discontinue penny production, the U.S. Mint is set to continue minting pennies in 2024. Notably, data from 2017 indicates a staggering circulation of 150 billion pennies valued at $1.5 billion, underscoring the enduring presence of physical pennies in the economy.
Nevertheless, Coinbase’s campaign underscores the potential benefits of embracing digital currencies, particularly stablecoins, in modernizing financial systems and enhancing efficiency for businesses and consumers.
Challenges and limitations
Austin Campbell, founder of Zero Knowledge Consulting and a proponent of stablecoins, acknowledges the challenges of transitioning finance to digital platforms. He highlights technical and logistical hurdles, particularly integrating traditional banking systems with the 24/7 nature of blockchain transactions.
Campbell emphasizes addressing these complexities to facilitate seamless and secure financial operations across digital platforms.
