Coinbase, a prominent cryptocurrency exchange, has sparked controversy within the Bitcoin community due to its decision to exclusively accept USDC for pizza purchases in celebration of Bitcoin Pizza Day, rather than the celebrated cryptocurrency itself. This move has elicited strong criticism from the crypto community.
The issue emerged on May 22, when Coinbase unveiled the Coinbase Pizza Truck in New York, offering pizza slices for a nominal fee of $1, but only accepting USDC, a stablecoin issued by Circle, as payment. This unexpected decision was met with outrage from Bitcoin enthusiasts, who questioned the exclusion of Bitcoin, which was the very cryptocurrency being commemorated on this special day.
Despite the potential intention of Coinbase to demonstrate the efficiency and transparency of stablecoin payments, the decision to omit Bitcoin from the festivities has generated significant backlash within the crypto community. At present, neither Coinbase nor its founder, Brian Armstrong, has issued any public statements addressing the matter.
In defense of Coinbase, former TechCrunch reporter Jacquelyn Melinek has argued that she understands the traditional desire to use Bitcoin for pizza purchases, but believes there is a larger message behind Coinbase’s focus on USDC. Melinek highlighted the lower transaction costs for businesses when using USDC, as opposed to the typical 3% credit card fees. However, critics have countered that Coinbase could have accepted payments in Bitcoin through the Lightning Network, a layer-2 solution known for cheaper transaction fees, which the exchange has actively advocated for as a means for “low-cost BTC transfers.”
Bitcoin Pizza Day commemorates the first known commercial transaction using Bitcoin, which occurred on May 22, 2010. On that day, a programmer named Laszlo Hanyecz famously paid a staggering 10,000 BTC (now valued at approximately $700 million) for two pizzas, marking one of the earliest real-world transactions involving the cryptocurrency. This event is now celebrated annually as Bitcoin Pizza Day, symbolizing the initial steps of Bitcoin’s journey towards broader acceptance as a legitimate form of currency.
The unorthodox celebration by Coinbase has ignited a contentious debate within the cryptocurrency community, with many expressing disappointment and frustration over the exchange’s decision to exclude Bitcoin from the festivities in favor of USDC. While Coinbase may have intended to highlight the advantages of stablecoin payments, the backlash serves as a testament to the deep connection between the crypto community and the historic significance of Bitcoin Pizza Day. As the controversy continues to unfold, it is evident that the relationship between cryptocurrency enthusiasts and the symbols of their community remains a matter of great importance.
