Cryptocurrency exchange Coinbase recently launched a new television ad that humorously highlights the drawbacks of traditional fiat currency, particularly the United States penny. The ad playfully showcases the need for a digital upgrade to replace outdated physical currency, sparking discussions within the crypto community about the importance of transitioning to digital currency in line with modern financial systems.
The one-minute ad released by Coinbase mocks the United States penny, shedding light on its numerous shortcomings. The ad mentions that $1.2 million worth of pennies are lost annually, and it costs nearly three times as much to manufacture a penny’s value. Additionally, the penny has not been updated for 167 years, making it an outdated and inefficient form of currency.
The campaign comically features an animated Abraham Lincoln, the former U.S. President depicted on the penny itself. Lincoln advocates for the penny’s transition into digital form, expressing a desire to be valuable as money again. The ad humorously portrays the penny as “useless barter for petty wishes tossed out like common garbage,” emphasizing the need for digitalization to restore its value and functionality.
Coinbase’s advertisement posits that stablecoins can be the solution to the problems associated with legacy fiat systems. Stablecoins are cryptocurrencies designed to minimize price volatility by pegging their value to an external reference, typically a fiat currency like the United States dollar. According to Coinbase, stablecoins can provide a way to “move money forward” and alleviate the costs associated with outdated financial systems for individuals and small businesses.
Coinciding with National Lost Penny Day on February 12th, which celebrates the creation of the penny, Coinbase’s ad generated further interest and engagement. National Lost Penny Day encourages Americans to find lost pennies around their homes, creating a sense of nostalgia surrounding the seemingly insignificant coin. This campaign serves as a backdrop to Coinbase’s message, highlighting the persistence of pennies despite efforts to discontinue their production.
Coinbase’s innovative advertising strategy received praise from prominent figures within the crypto industry. David Marcus, CEO and co-founder of Lightspark, commended the quality of the ad, noting the continuous improvement in Coinbase’s marketing efforts. Austin Campbell, founder of Zero Knowledge Consulting, emphasized the potential benefits of stablecoins for merchants, particularly instant settlement and low-cost payments. Campbell acknowledged the challenges involved in transitioning fiat currency onto the blockchain but emphasized the potential improvements in efficiency and accessibility of financial transactions.
Coinbase’s new television ad mocks traditional fiat currency, particularly the United States penny, and highlights the benefits of digital currency and stablecoins. The campaign humorously depicts the penny as an outdated and inefficient form of currency, emphasizing the need for digitalization to restore its value and functionality. Despite technical and logistical challenges, transitioning fiat currency onto the blockchain holds potential benefits for financial transactions. As the world continues to embrace digital advancements, it becomes increasingly crucial to recognize the power and potential of digital currency in driving modern financial systems forward.