An ad campaign by crypto exchange Coinbase suggests that transferring the United States dollar to a “well-designed blockchain” could breathe new life into billions of seemingly “clunky” pennies scattered throughout the country.
The campaign coincided with National Lost Penny Day on Feb. 12, an annual event commemorating the creation of the penny and urging Americans to locate misplaced pennies around their homes. This tradition originated in 1995.
Coinbase used this occasion to advocate for stablecoins as a means to “advance financial transactions” and alleviate the financial burden on individuals and small businesses imposed by traditional fiat systems.
In a post on Feb. 12, Coinbase revealed that $1.2 million worth of pennies are lost annually, surpassing their manufacturing costs by nearly threefold. Zero Knowledge Consulting founder Austin Campbell further emphasized the advantages for merchants, envisioning “instant settlement” and “low-cost payments” facilitated by stablecoins on the blockchain.
The campaign includes a one-minute advertisement featuring an animated portrayal of former U.S. President Abraham Lincoln advocating for the digitization of pennies. Lincoln laments the current state of pennies as mere tokens of insignificant value, contrasting with their historical significance.
Despite efforts spanning a decade to discontinue penny production, the US Mint intends to continue minting pennies in 2024. Data from 2017 indicates a circulation of 150 billion pennies valued at $1.5 billion.
Campbell, referred to as a “stablecoin philosopher,” acknowledges the technical and logistical hurdles in transitioning finance to online platforms. He highlights the disparity between legacy systems operating on a limited schedule and blockchain technology’s 24/7 accessibility.
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