Coinbase rolled out its cryptocurrency debit card powered by Visa in the month of April this year in the UK. The cryptocurrency exchange received a tremendous response for this service, and now it has expanded its operational area by offering the same service in six more European countries. The newly included countries consist of France, Germany, Ireland, Italy, Netherland, and Spain. Users in these countries can now avail the convenience of cryptocurrency debit card. Just so you know, the cryptocurrency debit card offered by the Coinbase allows the users to use their cryptocurrencies in order to make payments. The card is linked with a mobile application that converts the cryptocurrency into fiat currency and for this; Coinbase charges a fixed amount of fee from users. The mobile application powering conversion is available for both Android and Apple users. The functionality, for now, supports three types of cryptocurrencies – Bitcoin, Litecoin, and Ethereum, and this convenience can be availed for both online purchase and physical store shopping by users.
Customers’ Response
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Coinbase is yet to disclose the number of users who have availed the cryptocurrency debit card; however, in a conversation with CNBC, the chief executive officer of exchange’s operation in the UK, Zeeshan Feroz said that users lapped up the initial 1000 cards that the company gave free to the customers. This signifies that there is considerable demand to avail of this new service in the market, and experts predict that with the passage of time, the service is going to expand its scope further. For issuing the card, Coinbase has collaborated with the PaySafe, a well-known name in the UK payment processing industry, and this partnership has brought forth this one-of-its-kind service to users.
Critical Assessment
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A critical analysis of this convenience reveals that these kinds of functionalities can very well prove to be a game changer for cryptocurrency adoption around the world. While availing the service, users are not bothered about the technicalities involved in the conversion of currencies, and this can be easily considered one of the unique selling proposition (USPs) of this particular service. Despite the fact that Coinbase is charging for this convenience, customers seem to be more than happy to pay for it as long as they can enjoy a seamless transition between cryptocurrency and the fiat currency. Being operational in the domain of cryptocurrency trading, Coinbase is also uniquely positioned to leverage its expertise to provide such a service to users. This is because providing this kind of service may not be possible for other cryptocurrency organizations, and hence, cryptocurrency debit card has the potential to provide a sustainable competitive edge to the Coinbase. That said, the exchange has to remain careful about the safety aspect of the mobile application as scammers are constantly searching for the opportunity to rob the users of their investment. A constant vigil and high level of safety measures are needed to ensure that customers and their investment remain safe and secure in the long run. In sum, the initiative is good and welcomes by all the relevant stakeholders across the crypto circles.
