Coinbase is looking to make it easier for retail merchants to accept cryptocurrencies as means of payment.
Coinbase and Dai Working to Bring Retail Change
This week, the company announced that it had integrated Dai – a cryptocurrency released by Maker DAO – into its Coinbase Commerce retail merchants’ division, so that stores and similar business establishments could accept Dai in the future as payment for goods and services. Companies on platforms like Shopify and WooCommerce are now eligible to exchange items for Dai units.
On its blog page, Maker DAO explained:
This week, Coinbase Commerce, a popular platform that helps merchants accept cryptocurrency payments in a completely decentralized way, has integrated Dai as a payment method. Merchants around the world can now accept Dai as a payment for goods and services in minutes. Moreover, merchants do not pay a fee to use Coinbase Commerce, making onboarding free in addition to simple and secure.
One of the biggest problems with cryptocurrencies is that many companies do not accept them as valid forms of payment thanks to their vulnerability to wide price swings. Bitcoin, for example, initially began last week well over the $10,000 mark, but has since fallen by more than $400. To an extent, we cannot really blame businesses for turning their backs on digital currencies.
If you’re a customer, and you purchase $50 worth of merchandise with bitcoin, but tomorrow the price of bitcoin goes down, you’ll still walk away with all the items you purchased, but the store or business you bought from will wind up losing money. It’s not entirely fair to the receiving party, which is why so many have refused to acknowledge crypto or give it a green light in the payments department.
Coinbase is looking to make things easier by implementing a step-by-step platform designed for enabling merchants in the digital payments sector and establishing further confidence. Bitcoin and cryptocurrencies can strike mainstream territory granted businesses are more open-minded with them, and Coinbase would like to be the instigators of such change.
Maker DAO wrote:
In turn, [this] introduces merchants to a growing segment of the cryptocurrency market, allowing them to bridge the gap between DeFi dApp entrepreneurs and their own ‘real world’ businesses.
Things Are Moving Along Nicely
Dai also has a huge advantage in that it’s a stable currency, meaning it’s tied to traditional fiat like the U.S. dollar, the yen and the euro. These currencies are less prone to price fluctuations than more common digital assets such as bitcoin and Ethereum, meaning they are less likely to drop or fall south.
Dai’s integration into Coinbase Commerce means it’s now available to more than four million separate merchants. Coinbase has commented that it struck $135 million in merchant transactions last year, more than 600 percent higher than where this figure stood in 2018.