Coinbase opened a waitlist yesterday for a new Visa debit card that will arrive for U.S. customers next year. The card will let users spend cryptocurrency directly from their Coinbase holdin
Coinbase opened a waitlist yesterday for a new Visa debit card that will arrive for U.S. customers next year. The card will let users spend cryptocurrency directly from their Coinbase holdings at any merchant accepting Visa payments worldwide.
When a customer makes a purchase or withdrawal, Coinbase converts the cryptocurrency into U.S. dollars before the transaction completes at the register or ATM machine. This means customers are spending in dollars, not crypto, even though the funds come from cryptocurrency accounts.
The card supports all major cryptocurrencies—Bitcoin, Ether, and Litecoin among them—as well as stablecoins like USD Coin. Users can choose which type of crypto to convert for each purchase through the Coinbase app. They also manage their spending and choose their cash-back rewards through the app.
Using the card earns 4% back in cryptocurrency. When the U.S. version launches, customers can select between 4% back in Stellar Lumens or 1% back in Bitcoin.
Coinbase tested this concept in Europe and the U.K., launching its debit card there in April 2019. The service has expanded to nearly 30 countries across those regions since then.
PayPal announced its entry into the cryptocurrency market just days ago, acquiring BitGo to build infrastructure for supporting digital assets. That move signals ambitions to compete with Coinbase, Square, and others for a slice of the growing cryptocurrency market. PayPal's billions of existing users give it a significant advantage as it moves into the sector.
