Top U.S. cryptocurrency exchange Coinbase has unveiled a new bitcoin debit card that allows users to draw money from attached cryptocurrency accounts and retailers to garner profits and funds in USD. The card can be used anywhere Visa is accepted.
Coinbase Issues New Rewards Card
The idea is that bitcoin and other cryptocurrencies are not utilized for payments enough given that they are too volatile and that transactions can often take extremely long periods to clear. If a person goes into a store and buys $50 worth of merchandise with bitcoin, but tomorrow the price of BTC goes down and that $50 turns into $40, the store lost money while the customer manages to get away with everything they purchased.
It’s a tough situation in that bitcoin and cryptocurrencies were initially designed to give people who don’t have bank accounts or credit cards access to new payment methods. Users could potentially buy goods and services with digital currencies. This was the original goal behind the development of digital assets, but sadly, they are just too vulnerable to price swings and as a result, many retailers and merchants have outright refused to accept them.
In addition, the bitcoin network is known for its unusually slow transaction times, and many of these payments can often take ten minutes or more to clear. All the while, as parties are waiting those ten minutes, the door is open to financial fraud and similar issues. However, Coinbase is hoping it can help solve some of these problems and potentially push mainstream crypto payment adoption.
The cryptocurrency exchange has been testing the new debit card in Europe for the past several months. A statement has been issued claiming that users in America can gain access to the card by early next year. One of the big benefits of the card is that anyone who utilizes it can garner crypto rewards. Engaging in a transaction allows the paying party to receive either one percent cashback in bitcoin, or four percent in Stellar Lumens (XLM).
Here’s How to Avoid the Fees
In the future, Coinbase says that crypto rewards delved out in other assets are likely to be introduced. This system is designed to eliminate many of the fees associated with the bitcoin network. Not only can they be relatively expensive, but Coinbase will typically be forced to charge a near 2.5 percent levy with every card charge. Paying users in BTC or Stellar is meant to help them get past the fee system.
However, card owners can avoid the fees altogether granted they have USDC units stashed away in a digital account somewhere. USDC is a type of stable currency tied to the U.S. dollar, and if the person in question utilizes this asset to pay for goods and services, they can avoid any kind of fee while still earning the one to four percent rewards.