Coinbase launches cryptocurrency debit card in the US
Coinbase has announced that the US customers of the company can now join the waitlist for its Coinbase Card, a debit Visa card that allows cryptocurrency to be used for payments and purchases online and in-store as well as for ATM cash withdrawals and anywhere where Visa cards are accepted. Coinbase Card also introduces new opportunities for customers to earn up to 4 percent when they spend Stellar Lumens, or 1 percent back when they spend bitcoins. The rewards program will be available initially to all customers in the US.
The card works like any other Visa debit card and allows users to spend crypto directly from their Coinbase account. Cryptocurrencies are automatically converted to US dollars before withdrawing from ATMs.
Coinbase disclosed, “The first customers will be approved this winter. As soon as the customers are approved, they will be able to use the virtual card right away and will also receive a physical card in the mail within two weeks.”
Like the Crypto.com Visa or the Bitpay Mastercard, Coinbase card will also provide a virtual card. Users can utilize the virtual Coinbase Visa as soon as they are approved.
Coinbase said that the card’s US launch is a significant breakthrough, as it would help expand crypto’s mainstream.
A Coinbase spokesperson said, “Customers can make everyday purchases like coffee and lunch or can shop online directly with the crypto in their Coinbase accounts. The utilities for cryptocurrencies are vast and have so much more potential beyond trading and investing.”
Originally launched in the UK in April 2019, the debit card became available in nearly 30 markets before coming to the US. However, the card will be available in all the US states except for Hawaii.
There are minor differences between the US card and the card that’s offered in Europe. Coinbase notes that there is no fee required initially to issue the card in the US, but standard crypto conversion fees may apply. Customers in the US can sign up for and manage their card directly in the Coinbase app whereas in Europe Coinbase has a separate app for managing the card. In the US users can spend any cryptocurrency they hold on Coinbase and in other regions users are limited to a smaller list of coins.
The users will also have an option to spend stablecoins like USD Coin or any other cryptocurrencies and stablecoins that Coinbase supports in the US.
On the other hand, Coinbase’s UK and EU cards support limited nine cryptocurrencies – BTC, Ethereum, Litecoin, Bitcoin cash, XRP, Brave’s basic attention token, Augur, 0x (ZRX), and XLM.
The Coinbase spokesperson said, “The daily spending limit for Coinbase Card in the US would be USD 2,500. In the UK and EU, the card has limits of £10,000 or €10,000, respectively.”
Coinbase Card in the US will be issued by MetaBank and the card would be powered by payments processor Marqeta.
Founded in 2012, Coinbase’s mission is to create an open financial system for the world. It is a digital currency wallet where merchants and consumers can transact with new digital currencies like bitcoin, Ethereum, and Litecoin.