cryptopolitan.com
Coinbase has announced the discontinuation of native Bitcoin and other Unspent Transaction Output (UTXO) based cryptocurrencies on its merchant payment platform, Coinbase Commerce. The decision, revealed by the company’s Head of Product, Lauren Dowling, comes amidst challenges in integrating Bitcoin into the platform’s recent updates.
Coinbase shifts away from Bitcoin payments
Coinbase Commerce, known for enabling merchants to accept cryptocurrency payments, is undergoing changes to enhance its payment protocols. Dowling disclosed the decision to cease support for native Bitcoin and similar UTXO coins on the platform via a thread on X (formerly known as Twitter) dated February 18. The move is attributed to difficulties in maintaining these cryptocurrencies alongside the platform’s new features, particularly those related to the Ethereum Virtual Machine (EVM) payment protocol.
The updated Commerce platform aims to enforce payment details on the blockchain, extend support to a wide array of digital assets, including ERC-20 tokens, and facilitate automatic conversion of payments into USDC—a stablecoin pegged to the US dollar. The inherent limitations of the Bitcoin blockchain, notably the absence of smart contract capabilities and stablecoins, were highlighted as key challenges, leading to the decision to phase out native Bitcoin support.
Future prospects and community response
Despite removing direct Bitcoin transactions, Coinbase CEO Brian Armstrong indicated that Bitcoin users could still utilize Coinbase Commerce through their Coinbase accounts. Furthermore, Armstrong mentioned ongoing efforts to integrate the Lightning Network, a layer 2 payment protocol designed to expedite Bitcoin transactions and reduce costs, suggesting future enhancements for crypto payments on the platform.
The decision has sparked debates within the cryptocurrency community, with some expressing concerns over the implications for Bitcoin adoption and the broader accessibility of Coinbase Commerce. Critics argue that the move could limit customers’ choice and flexibility in using cryptocurrencies for online transactions.
In response to these developments, Coinbase emphasizes the importance of transitioning away from layer 1 solutions to achieve mainstream adoption of crypto payments. The company aims to streamline the online payment experience by reducing transaction fees and confirmation times and fostering greater acceptance of digital currencies.
As the cryptocurrency landscape continues to evolve, Coinbase’s strategic adjustments to its Commerce platform underscore the ongoing efforts to balance innovation with user accessibility and market demands. The integration of advanced payment protocols and the potential incorporation of the Lightning Network may pave the way for more efficient and versatile crypto payment solutions in the future.