Community angry after Coinbase taps USDC to celebrate Bitcoin Pizza Day

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As a researcher with extensive experience in the crypto industry, I believe that Coinbase’s decision to sell pizzas exclusively for USDC during Bitcoin Pizza Day was a misstep. While I understand the exchange’s intention to demonstrate the efficiency and transparency of stablecoin payments, the exclusion of Bitcoin on this particular day sparked intense criticism from the crypto community.

To showcase affordable transactions using USDC, Coinbase drew criticism from Bitcoin enthusiasts for not offering pizza sales in Bitcoin during Bitcoin Pizza Day.

The Bitcoin community criticized Coinbase heavily for their unique approach to commemorating Bitcoin Pizza Day. Instead of accepting Bitcoin as payment for pizzas, Coinbase chose to only transact in USDC, resulting in widespread backlash.

On May 22, Coinbase kicked off its festivities with the debut of the Coinbase Pizza Truck in New York. This unique food truck provided pizza slices for just a dollar. Yet, there was a condition: customers could only pay using USDC, a stablecoin issued by Circle, a long-standing partner of Coinbase. This unexpected requirement stirred up debate among Bitcoin supporters.

On Bitcoin Pizza Day, we commemorate the significant advancements of cryptocurrencies, like Bitcoin, since their inception in 2010, leading to more affordable and swift transactions.

— Coinbase 🛡️ (@coinbase) May 22, 2024

As a crypto investor, I’ve noticed that Coinbase’s recent announcement to prioritize stablecoin transactions over Bitcoin during their collaboration with Visa left many of us feeling frustrated. Despite their intent to highlight the advantages of stablecoins in terms of efficiency and transparency, excluding Bitcoin from the occasion was met with fierce backlash within the crypto community.

I wasn’t aware that today was USDC Pizza Day instead of Bitcoin Pizza Day. Kudos to Coinbase for maintaining elegance in their observances.

— Randy 📡 NYC Bitcoin Association (@c3ntrx) May 23, 2024

In the face of criticism, neither Coinbase nor its CEO Brian Armstrong made any public comments concerning the issue when the news broke. Jacquelyn Melinek, a former TechCrunch journalist, expressed her understanding of the concept behind selling pizzas for Bitcoin but attempted to justify Coinbase’s emphasis on US Dollar Coin (USDC) in response to lower transaction costs for businesses.

“Coinbase’s decision to allow people to purchase pizza using USDC instead of bitcoin on Bitcoin Pizza Day drew criticism from some. While I understand the underlying concept, it’s essential to note that this transaction method significantly reduces business costs compared to the typical 3% credit card fee.”

Jacquelyn Melinek

Instead of “critics argued that Coinbase could have also accepted Bitcoin payments via the Lightning Network,” you could say “it was suggested that Coinbase might have processed Bitcoin transactions using the Lightning Network, which is known for its lower fees and is being advocated by the exchange as an option for ‘affordable BTC transfers’.”

As a analyst, starting today, I am thrilled to announce that I will be facilitating the gradual implementation of Bitcoin’s Lightning Network through my platform, @lightspark. This development enables swift and cost-effective transactions in Bitcoin for all our users. For further insights, please explore the linked resources.

— Coinbase 🛡️ (@coinbase) April 30, 2024

Bitcoin Pizza Day celebrates the first documented commercial transaction using Bitcoin.

On May 22, 2010, an individual named Laszlo Hanyecz made history by purchasing two pizzas using 10,000 Bitcoins, which are now worth approximately $700 million. This transaction, commemorated as Bitcoin Pizza Day, represents one of the earliest real-life Bitcoin transactions and marks a significant milestone in Bitcoin’s evolution into a widely recognized currency.

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2024-05-23 14:16