Coinbase launches cryptocurrency Visa debit card in the US
Thursday, October 29, 2020
The exchange Coinbase launches Visa debit card for retail expenses with cryptocurrencies. There will be a rewards program with Bitcoin and Stellar.
***
Renowned exchange Coinbase announced yesterday that American customers can now join the waiting list for its Coinbase card, a Visa debit card that allows customers to spend cryptocurrency anywhere Visa cards are accepted. Coinbase claims that it is "the easiest and fastest way to spend your crypto around the world."
Previously, since April 2019, the card was only available in the United Kingdom and the European Economic Community. It currently operates in 30 countries.
According to The Verge, there are a series of debit cards around the world that allow the user to spend cryptocurrencies (soon it will also be possible to do with Paypal - by the way, this announcement comes just days after the payment giant's announcement to accept cryptocurrencies-). But many platforms require you to load funds onto the card in order to spend them. But this product is different: The Coinbase card removes the middle man and draws funds directly from your Coinbase account instead. Other cards are limited to one or a few coins; while the Coinbase card supports more than 30, according to the company (and converts everything to US dollars before completing purchases and withdrawals at ATMs).
The information reported by the media also states that there is an optional rewards program (only available to US customers for now). It comes with a rewards program - the customer can choose to get back 4 percent in Stellar Lumen coin or 1 percent in Bitcoin.
Although there is no issuance fee, Coinbase says that "cryptocurrency conversion fees may apply" (and these may be steep).
In the Coinbase app, the user will be able to keep track of recent transactions and reward earnings. You can manage your rewards currency there, as well as the currency you are spending with.
To acquire Visa from Coinbase
If you want to join the waiting list, you can do so through the Coinbase app.
However, according to the media, it is time to wait a bit, since Coinbase says that the first customers will be approved from December and early 2021. But, as soon as it is approved, you can start spending with a virtual card. According to the exchange, the public will receive your physical card in the mail two weeks after approval. Obviously, the customer needs to have a verified Coinbase account in order to use the card.
"Industry trends illustrate increased consumer activity," Coinbase spokesperson Crystal Yang said in an emailed statement to Coindesk. "Now Coinbase is taking mainstream crypto adoption one step further by introducing the Coinbase card in the US."
The card is issued by South Dakota-based MetaBank and works with the Marqeta payment platform.
