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Cryptocurrency

Coinbase US debit card: the crypto sphere's new trend

Samson Ononeme | May. 17, 2019
Coinbase US debit card: the crypto sphere's new trend

In a recent interview, the CEO of Coinbase revealed the plans to introduce Coinbase US debit card. This decision for introducing debit card in the US was fuelled by the success of Coinbase debit card launch in the UK previous month.

May 17, 2019, | AtoZ Markets - Yesterday, Coinbase CEO Brian Armstrong held his live Ask Me Anything (AMA) session on Youtube and answered many interesting questions related to his big Consensus discussion.

After he confirmed that Coinbase just crossed $1 billion assets under management (AUM) or institutions, 70 institutions have signed up, adding about $150 million AUM a month, he had to answer one question that was obviously bothering American people; when will Coinbase card be available for use in the US?

Brian Armstrong: Coinbase Card will be available in USA 

Coinbase US debit cardArmstrong explained that this will happen soon but didn’t want to reveal the date. He noted that a few years ago they made a partnership with Shift Payments in the U.K. The card supports all available crypto assets to be purchased and sold on the Coinbase platform and, as per the announcement, customers can use it to pay for daily purchases, like a meal or a book ticket.

The Coinbase Card, which was first brought to the UK market and Europe, enables users to convert their crypto assets into fiat currency, like GBP during a POS purchase or through an ATM. Users need to download the corresponding mobile app to access information about their card, which also links with their crypto account.

Coinbase Card is supported by cryptocurrency customer accounts, enabling them to pay online and on-store using Bitcoin, and other major coins. At millions of places worldwide, customers can use their card, make payments by contactless, chip, and PIN and withdraw cash from ATMs. When customers are using their Coinbase card, we convert cryptography into fiat currency, like GBP, to finish purchasing.

It is worth remembering, with retail spending having such a massive impact on the industry, the company launched a crypto debit card with Shift Card, only to find themselves in a difficult predicament when the provider shut down this year. Rather than just discontinuing the offer, Coinbase found a solution in PaySafe.

When will Coinbase sell cryptocurrencies in Canada again?

It’s not just U.S.A that’s being problematic to Coinbase. Their northern neighbors Canadians also wanted to know when they are gonna be able to sell cryptos in Canada.

The cryptocurrency industry is not regulated in Canada, and there is no governing body providing industry oversight. Just to remind you, when the 30-year-old founder of a Canadian cryptocurrency exchange Quadriga died suddenly, he took the whereabouts of some C$180m ($135m; £105m) in cryptocurrency to his grave. Now, tens of thousands of Quadriga CX users are wondering if they will ever see their funds again.

Armstrong said:

“We are really focused on adding more assets and launching in more countries. We had some issues there with our payment partner so we had to reset that and try to find another one. This is one of those things. I just kind of want to announce it right now but I haven’t spoken to my team yet about that so I can’t. They don’t like when I do that, but yes – we are working on Canada.”

Coinbase to support Margin trading?

Shifting gears, Brian Armstrong also talked about margin trading during the course of the interview. He said that Coinbase is considering the possibilities of supporting Margin trading, nothing is solid yet.

Margin trading enables a trader to open a leverage position. If, for instance, we opened a 2X leverage margin and increased our base assets by 10 %. Due to the 2X leverage, our position would have been 20 %. Standard trade with a 1:1 leverage is being traded.

Though the idea of margin trade on Coinbase is not active yet, the possibility of it could be happy news for lots of traders and investors.

Coinbase wants to educate people on how to earn money on taxes

It also may be that the card could be expensive for Americans. The CEO bare in mind that the use of the Coinbase card in the United States could be a little pricier, than in the U.K. considering the capital tax gains that the government stands to make.

Every single transaction is examined to see if taxes should apply, which is why the Internal Revenue Service (IRS) will be overseeing the card domestically. Taxes will ultimately be implemented for the conversions from cryptocurrency, and will still be imposed on retail purchases, just as they are with credit cards. Even transactions involving airdrops and purchasing tokens are on the chopping block for taxation.

Armstrong said:

“We want to create crypto-economy with more economic freedom. That will help world to grow. Everybody can participate. It’s super easy to start business, to get funding, raise money that way. Taxes are one more way to help people make money. Hypothetically if we say someone: if you’d wait for three more days you could get long term capital gains”. That’s what we want people to know and to make money that way.”

Brian Armstrong was in the news recently after he claimed that Bitcoin and other cryptocurrencies needed institutional investors to grow and mature. He even sided with the argument that having trusted custodians in the cryptoverse was “really important” to restore positive sentiment.

Think we missed something? Let us know in the comments section below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.