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Coinbase Commerce To Remove Native Bitcoin Support
Coinbase recently announced that it would be removing support for native Bitcoin (BTC) payments across its payment platform for merchants, Coinbase Commerce. According to the company’s head of product, Lauren Dowling, customers were experiencing challenges related to crypto volatility risk, manual burden of resolving incorrect payments, and limited asset support.
What Does It Mean for Asset Support Strategy?
Lauren Dowling, the product lead for Coinbase Commerce, shared insights on the evolving product and clarified the implications of these changes for the asset support strategy moving forward. Dowling also mentioned that all users would be transitioned to the new version of the product on April 15th, with continued support for self-custody payments on Base, Polygon, and Ethereum. Payments in BTC and LTC will still be supported via specified channels.
Is Coinbase Moving Away From Bitcoin?
The decision to discontinue support for native Bitcoin payments by Coinbase Commerce has spurred controversy within the industry. Some believe that this move reflects a step away from the founding principles of Bitcoin, particularly in terms of peer-to-peer finance, privacy, and decentralization.
Alternatives to Native Bitcoin Payments
Despite the challenges associated with native Bitcoin payments, alternatives such as UTXO assets and layer 2 (L2) solutions are being considered to ensure seamless transactions. Rena Shah, Vice President of Operations and Strategy at Trust Machines, highlighted the complexities involved in coordinating on-chain and off-chain protocols and the potential for L2 solutions to facilitate easier native Bitcoin transactions.
Lightning Network Versus a Bitcoin L2
The debate over the most suitable solution for enabling native Bitcoin payments on platforms like Coinbase continues, with differing opinions on the benefits of the Lightning Network versus a Bitcoin L2. While some advocate for the integration of the Lightning Network, others emphasize the advantages of blockchain-based L2s, such as Stacks, for everyday payments.
Challenges and Predictions for Native BTC Payments
Despite the potential for alternative solutions, challenges and skepticism persist regarding the adoption of native Bitcoin payments across Coinbase Commerce. However, it is predicted that post-halving this year, Bitcoin will heavily rely on its Layer 2 infrastructure for most transactions, while the base layer focuses on high-value settlements.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
