Cryptocurrency exchange Coinbase is going to launch its Visa debit card in the United States by next year. The exchange announced yesterday that clients could join the waitlist for the Coinbase card.
According to the Coinbase, the Visa debit card will be issued to customers. It would enable them to use crypto for payments and purchases online, in-store and ATM cash withdrawals. The Coinbase card is another chance for users to earn 4% back in crypto rewards.
This isn’t the first time Coinbase is introducing its debit card. The exchange launched its debit card for the U.K and European clients in April 2019. At the time, the San Francisco based firm revealed that customers could spend their Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and other cryptocurrencies effortlessly. The Coinbase card is available to clients in nearly 30 countries across Europe and the United Kingdom.
Although clients will be using crypto to purchase, Coinbase converts the coins to fiat money instantly. Therefore, enabling fast transactions. In this latest development, the Coinbase cardholders can spend cryptocurrency anywhere Visa cards are accepted globally.
Coinbase card has various benefits
According to the blog post, “Coinbase cardholders can spend directly from their Coinbase accounts without having to move funds to their bank accounts. Cryptocurrency is converted to U.S. dollars prior to completing purchases and ATM withdrawals”.
Using cryptocurrency through daily spending can enable users to earn rewards from the crypto exchange. When the card is launched in the United States, clients can select to earn 4% back in Stellar Lumens or 1% back in Bitcoin.
The customers can also manage their spending and reward preferences via the Coinbase application. “Customers can opt to spend stablecoins like USD Coin or other specific cryptocurrencies with the touch of a button”, Coinbase said.
Coinbase is launching its card in the U.S. a few days after PayPal announced its entry into the cryptocurrency sphere. PayPal will provide tough competition to the likes of Coinbase, Square and other cryptocurrency entities. PayPal has started making moves to expand its crypto services with the recent acquisition of BitGo.