Coinbase faced backlash from the Bitcoin community after it chose to celebrate Bitcoin Pizza Day by selling pizzas for USDC instead of Bitcoin, sparking widespread criticism.
On May 22, Coinbase launched the Coinbase Pizza Truck in New York, offering pizza slices for $1 each. However, the payments were only accepted in USDC, a stablecoin issued by Circle, Coinbase’s long-time partner. This decision angered many Bitcoin enthusiasts, who felt that Bitcoin should have been the payment method for the occasion celebrating Bitcoin’s history.
The intent behind Coinbase‘s move was likely to showcase the efficiency and transparency of stablecoin transactions. However, the exclusion of Bitcoin, the cryptocurrency being celebrated, led to significant discontent within the crypto community.
Despite the backlash, neither Coinbase nor its founder, Brian Armstrong, made any public comments on the matter. Former TechCrunch reporter Jacquelyn Melinek defended Coinbase‘s focus on USDC in an X post, noting that using USDC could reduce transaction costs for businesses to just a few cents, compared to the typical 3% card fee.
“Some people complained about Coinbase selling pizza with USDC instead of Bitcoin on Bitcoin Pizza Day. I get the principle, but there’s a bigger message here: buying pizza with USDC makes transaction costs for businesses a few cents versus the usual 3% card fee,” Melinek explained.
Critics argued that Coinbase could have also accepted Bitcoin payments via the Lightning Network, a layer-2 solution known for its low transaction fees. Coinbase has been promoting the Lightning Network recently as a method for “low-cost BTC transfers.”
Bitcoin Pizza Day commemorates the first documented commercial transaction using Bitcoin. On May 22, 2010, programmer Laszlo Hanyecz paid 10,000 BTC (currently valued at around $700 million) for two pizzas. This event is now celebrated annually as Bitcoin Pizza Day, symbolizing Bitcoin’s journey towards mainstream acceptance as a form of currency.
Summary Review: While Coinbase aimed to highlight the practical benefits of stablecoins, the choice to sideline Bitcoin on its own celebration day struck a nerve with the community, reminding everyone of the deep connections and symbolism that Bitcoin holds within the crypto world.
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