Ladies and gentlemen the Coinbase debit card has been launched! The well-known cryptocurrency exchange launched a Visa Debit card that enables users to utilise their cryptocurrency such as Ethereum, Bitcoin and Litecoin straight from their coinbase account.
What is Coinbase?
Coinbase is an online platform designed for secure purchasing, storing, selling and transferring of digital currency. Their goal is to develop an open financial system that helps people all over the world convert their digital currency into local currency and vice versa. I think it’s safe to say that Coinbase has managed to do that so far.
The Launch of Coinbase Debit Card for EU and UK users.
For a long time now cryptocurrencies such as Bitcoin, Ripple, Ethereum and other major cryptos have had to go through criticisms like; how hard they are to use in the real world as compared to the tradition Fiat currency. Bitcoin itself has been said to be too volatile to be a reliable method of payment; this has resulted in cryptocurrency generally being used like gold, as a store of value rather than as a means-of-exchange currency.
Now that Coinbase has joined forces with international payments processor Visa to create a coinbase card; people can spend their cryptocurrencies as if they were spending money in their bank. The Coinbase UK CEO said “The coin base car will start from being available in the UK, and the coming months it will spread out across the European markets that Coinbase operates in. With open-minded consumers and a successful Fintech ecosystem, the UK is the perfect place to start.
How will the Coinbase Debit card work?
The Coinbase Debit card will be different from other existing cards in that; instead of users having to pre-load their account with a particular amount of cryptocurrency, they will have their Coinbase Debit cards linked to their exchange coinbase accounts. Moreover, Coinbase will be the ones to convert the cryptocurrency to Fiat when required.
How it works is that, to ensure that the right value is taken exactly when the transaction occurs; the equivalence of the amount spent in crypto will be immediately liquidated into Fiat. And therefore the funds are simultaneously debited from the client’s account. The limits are; £500 cash withdrawal per day and they can spend up to £10,000 daily. Coinbase will also be launching an app that will allow customers to choose the cryptocurrency wallet that will fund their spending.
Coinbase even went on to say that; it will give away the first 1000 debit cards for free to U.K. clients that sign up on a waitlist. Aside from that 1000, the rest would have to purchase it at about 5 pounds each. Other than that there aren’t any monthly fees.
I believe this a very good move for coinbase, and quite beneficial to the cryptocurrency world as well. To a certain extent; the Coinbase Debit card could be the first of its kind in the UK for a large crypto exchange like Coinbase. Nevertheless, the coinbase Debit card may have to go against other issuers of crypto payment cards like; Crypto.com and TenX in the future; but for now, those cards are not globally available. So let’s enjoy Coinbase Debit Card while it lasts.