The Coinbase Mission, Vision & Strategy

Summary

In this presentation, Brian Armstrong, CEO and Co-Founder of Coinbase, shares the company's vision for the next decade. He recounts his personal journey from facing struggles in the traditional financial system to discovering Bitcoin, which led to the creation of Coinbase. Armstrong emphasizes Coinbase's mission to promote economic freedom worldwide through cryptocurrency. He outlines the company's strategy to achieve this, focusing on enabling crypto investing, connecting to the cryptoeconomy, and growing the broader crypto ecosystem. Ultimately, Armstrong envisions a future where cryptocurrency empowers billions globally, changing the financial landscape and fostering economic equality.

Takeaways

• 😀 Brian Armstrong, CEO of Coinbase, shares the company's vision, mission, and strategy for the next 10 years.
• 😀 His inspiration for starting Coinbase came from his own frustrating experiences with traditional financial systems.
• 😀 Armstrong highlights the importance of economic freedom and how it relates to the ability to own property, send money, start a business, and avoid corruption.
• 😀 Cryptocurrency, especially Bitcoin, is seen as a potential solution to create a more fair, efficient, and global financial system.
• 😀 Coinbase's mission is to increase global economic freedom, particularly through the use of cryptocurrency and smartphones.
• 😀 The three core pillars of Coinbase's strategy are: Enable Crypto Investing, Connect to the Cryptoeconomy, and Grow the Cryptoeconomy.
• 😀 Enabling Crypto Investing means providing a secure, trusted platform for users to buy and store cryptocurrency, acting as a bridge between fiat and crypto systems.
• 😀 Connecting to the Cryptoeconomy focuses on integrating cryptocurrency-related products and services to create a connected financial ecosystem.
• 😀 Growing the Cryptoeconomy involves fostering new businesses and companies that accept and work with cryptocurrency, creating an entirely new crypto-native economy.
• 😀 Armstrong emphasizes the importance of trust, usability, and quality in Coinbase's services, aiming to simplify cryptocurrency usage for millions of people worldwide.
• 😀 Coinbase's ultimate goal is to reach 1 billion users in 5-10 years, significantly improving global economic freedom and transforming the financial system.

Q & A

What was Brian Armstrong's inspiration behind starting Coinbase?

Brian Armstrong was inspired by his experiences with inefficiencies in the traditional financial system, including his struggles with banking, credit issues, and encountering regulatory barriers at Airbnb. His interest was further sparked by the Bitcoin whitepaper by Satoshi Nakamoto, which introduced the concept of decentralized money and the potential for a more open and fair financial system.

How does Brian Armstrong describe 'economic freedom'?

Economic freedom refers to the ability of individuals to have secure property rights, access to global trade, the ease of starting a business, and the protection from inflation and corruption. It also correlates with better outcomes for the poorest individuals and can foster positive social conditions, such as self-reported happiness and better environmental practices.

What role does cryptocurrency play in enhancing economic freedom?

Cryptocurrency supports economic freedom by providing people with wealth that cannot be easily taken away, facilitating global trade without borders, democratizing business fundraising, and reducing corruption by enabling transparency through public ledgers. It also helps fight inflation, such as through the use of stablecoins in countries like Venezuela.

What is the vision of Coinbase for the next 10 years?

Coinbase’s vision is to enhance economic freedom for every person in the world over the next decade by building an open financial system using cryptocurrency and the smartphone revolution. This aims to make financial services more inclusive, transparent, and efficient globally.

What does Coinbase mean by the 'open financial system'?

The 'open financial system' refers to creating a financial ecosystem using cryptocurrency that is accessible globally, free from the limitations of traditional financial institutions, and designed to provide more equitable access to financial services, especially in regions with limited access to conventional banking.

How does Coinbase plan to create this open financial system?

Coinbase plans to create an open financial system by enabling millions of people to securely store, earn, and use cryptocurrency. It also aims to help businesses adopt cryptocurrency and to create infrastructure that will support the growing cryptoeconomy, including products like Coinbase Earn, Staking, and Coinbase Commerce.

What are the three pillars of Coinbase's strategy?

The three pillars of Coinbase’s strategy are: 'Enable Crypto Investing,' which focuses on helping people access and invest in cryptocurrency; 'Connect to Cryptoeconomy,' which integrates Coinbase’s products to create an interconnected crypto ecosystem; and 'Grow the Cryptoeconomy,' which aims to foster the growth of a broader crypto-native economy by supporting startups and integrating third-party apps.

What is the importance of 'Enable Crypto Investing' in Coinbase’s strategy?

'Enable Crypto Investing' is the foundation of Coinbase’s strategy, helping people access cryptocurrency by providing a trusted and secure bridge between traditional finance and the cryptoeconomy. Coinbase’s role as a brokerage, exchange, and custodian enables users to invest and store their crypto assets safely.

How does Coinbase plan to connect users within the cryptoeconomy?

Coinbase plans to connect users within the cryptoeconomy by integrating various products such as Coinbase Earn, Staking, and Coinbase Commerce into a unified ecosystem. This allows users to not only store their cryptocurrency but also earn, spend, and invest it, thus fostering a more interconnected and active cryptoeconomy.

What does Coinbase’s 'Grow the Cryptoeconomy' pillar involve?

The 'Grow the Cryptoeconomy' pillar involves supporting the development of the cryptoeconomy by investing in crypto-native startups, enabling decentralized infrastructure like decentralized identity, and integrating third-party apps and services into Coinbase’s platform. This strategy aims to foster an ecosystem of thousands of companies that use cryptocurrency and contribute to the broader growth of the economy.

What distinguishes Coinbase from other companies in the cryptocurrency space?

Coinbase differentiates itself through a strong focus on trust, security, usability, and quality. It has built a trusted brand with 30 million users, prioritizing compliance, cybersecurity, and ease of use to make cryptocurrency more accessible and user-friendly for the masses.