Coinbase Commerce, a service designed to facilitate cryptocurrency payments for merchants, has recently announced the removal of native Bitcoin support. While merchants can still accept Bitcoin, the transactions can only be processed if the customer uses a coinbase.com account.
This change was driven by challenges in delivering recent updates on Coinbase Commerce’s EVM (Ethereum Virtual Machine) payment protocol for Bitcoin.
The new Commerce product focuses on enforcing payment details on-chain and supports a wide range of assets, including native and ERC-20 tokens. It also automatically converts payments to USDC (USD Coin) on-chain at a guaranteed rate for merchants.
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However, providing the same capabilities on the Bitcoin blockchain without smart contracts and stablecoins posed significant challenges, leading to the removal of native Bitcoin and UTXO (Unspent Transaction Output) support.
Although Coinbase Commerce will no longer directly support Bitcoin transactions for merchants, CEO Brian Armstrong clarified that customers using Coinbase accounts can still use Bitcoin as a payment option.
Additionally, Coinbase is working on integrating the Lightning Network, a layer-two scaling solution for Bitcoin, into its platform. This integration could potentially open up opportunities for Lightning Network-based commerce payments in the future.
Cryptocurrencies have come a long way since their inception, and their journey toward mainstream adoption continues to evolve. As the global adoption of cryptocurrency grows, it’s essential to understand the challenges and opportunities that lie ahead.
At the heart of crypto lies decentralization—a fundamental departure from traditional financial systems. Crypto offers transparency, immutability, and security, all while challenging established institutions like governments, central banks, and venture capitalists. Born out of an economic crisis, cryptocurrencies aimed to empower individuals by reducing reliance on fiat money and centralized banking.
Regulation and Mainstream Acceptance
The ongoing tug-of-war between regulatory bodies and crypto organizations underscores the shift toward mainstream acceptance. While regulation introduces order into the crypto space, it’s intriguing to witness how centralized institutions adapt to this decentralized world. Countries legalizing cryptocurrencies—some even considering them legal tender—demonstrate that crypto won’t fade into obscurity anytime soon.
Analysts predict that by 2030, the cryptocurrency market will triple in size, reaching a valuation of around $5 trillion. As crypto becomes more intertwined with business and technology, we can expect several trends:
Company Cryptocurrency for Equity: Modern businesses may offer employees equity shares in the form of company cryptocurrency. This approach creates an ecosystem where employees actively participate while bypassing traditional equity-sharing costs.
Crowdfunding with Blockchain Wallets: Online platforms already facilitate fundraising for various causes. With crypto’s lower-risk investment opportunities, small businesses and projects can raise capital via blockchain-based crowdfunding.