Coinbase has recently announced the launch of Coinbase Card, a Visa debit card which allows users spend their digital currencies.
We have to emphasize first that Coinbase card can now be used only by UK customers and it will soon become available to clients from EU countries.
Coinbase Card is practically connected to the user’s Coinbase account allowing online and offline payments by using the existing Bitcoin, Litecoin and Ethereum coins. Just like any other card, Coinbase Card can be used anywhere in the world for payments.
The debit card has been launched in collaboration with British payment processor PaySafe and comes with a mobile application that works on Android and iOS platforms allowing Coinbase clients to check their crypto expenses.
Unfortunately, we need to say that Coinbase debit card doesn’t actually “pay” directly with digital currencies but converts cryptocurrencies into fiat before making the final payment.
Concerning fees, Coinbase takes about £4.95 to deliver the card and then 2.49% for each transaction. Out of the 2.49%, 1.49% represents the conversion fee and 1% is the actual transaction fee taken by Coinbase.
So, if you are living in UK and you have in your Coinbase account Bitcoin, Ethereum and Litecoin, you can apply for the Coinbase Card and then go out there to pay for lunch. Are you looking to keep your spending frenzy in check? Simply install the Coinbase Card mobile application and have an overview of your crypto transactions.
Are you a citizen of an EU country? Coinbase announced that Coinbase Card will become available in the following months in other countries from Europe, so a little patience is necessary.
Why is this important for the market?
If we remember, some months ago, we had the Starbucks announcement which informed the general public that even though the major coffee company supports the advance of digital currencies, in order to avoid any accounting issues, they will only accept cryptocurrency cards that make the conversion from crypto to fiat before making the payment. So, if Starbucks took this position and they are recognized for being one of the major proponents of cryptocurrencies, we expect this model to impose itself in the following years.
Ok, it’s not the Bitcoin dream of replacing the world financial system, but it is nevertheless a big step ahead for crypto enthusiasts who look to buy coffee, food and everyday stuff with cryptocurrencies.