The difficulties of using Cryptocurrencies for everyday transactions as opposed to fiat has always been a hindrance to adoption. Volatility is an obvious bottleneck to merchant acceptance.
There is also the issue of few or no simple Crypto intermediary solutions making conversion payment mechanism for everyday consumer transactions. The situation is however about to change as Cryptocurrency exchange Coinbase has announced the launch of Coinbase Card, a Visa debit card that allows customers in the UK to effortlessly spend crypto just like the money in their bank accounts.
According to the Coinbase’s blog, “This is the first debit card to be linked directly with a major cryptocurrency exchange in the UK and EU, allowing users to spend their crypto balances direct from their Coinbase account.” Other Crypto cards require users to load a specified amount of crypto onto their card before using it. The process involves some hurdles in the payment process.
Coinbase, however, seeks to solve this problem with its Visa debit card hoping it would become a catalyst for people adopting bitcoin and other cryptocurrencies for real-world spending. The statement read:
“Coinbase Card is powered by customers’ Coinbase account Crypto balances, giving them the ability to pay in-store and online using bitcoin, Ethereum, Litecoin, and more. Users can use the card in millions of locations around the world, making payments through contactless, Chip and PIN, as well as cash withdrawals from ATMs.”
The blog post additionally indicated that when customers use their Coinbase Card, the exchange instantly converts crypto to fiat currency to settle the transaction. Accompanying the card is a Coinbase Card App to make the use of the card seamless.
Supporting Currencies And Jurisdiction
Users, therefore, have an option to choose which of their crypto wallets they would use to fund their Coinbase Card spending. Other features are instant receipts, transaction summaries and spending categories.
“Coinbase Card supports all crypto assets available to buy and sell on the Coinbase platform, meaning they can pay for a meal with Bitcoin, or use Ethereum to fund their train ticket home,” the post maintained.
The Card is currently accessible in the UK, but the $8 billion worth exchange intends to make it available to residents of other European countries in the coming months. However, no mention was made concerning support outside Europe.
The cards are issued by Paysafe Financial Services, a U.K. based firm. Apto Payments, formerly known as Swift Payments, since February has been the entity facilitating U.S. Coinbase users to spend crypto from their accounts.