Crypto users have long been asking for a debit card that allows them to spend their digital assets at regular merchant locations. Now, cryptocurrency exchange and wallet provider Coinbase is answering that call by introducing Coinbase Rewards Visa Card. This is the first time Coinbase has offered a financial product and the first time a digital currency company has partnered with a traditional bank to offer a card. The Rewards card is the first step toward offering users a more accessible way to spend digital assets.
- A few months ago, Coinbase announced its partnership with Visa to offer users a debit card that rewards them with crypto rewards when they make purchases with the card.
- The platform offers up to 4% rewards on card purchases in Stellar Lumens, The Graph, Amp, and Rally, or 1% back in Bitcoin, Ethereum, Dogecoin, and the Dai stablecoin.
- Only U.S. residents are eligible to use the crypto rewards benefit of this debit card. Hawaii residents are not eligible.
- Virtual cards are now available to those on the waitlist, and physical cards will be sent in the next few weeks.
- Where Visa is accepted, users can pay with either crypto or U.S. dollars.
Coinbase announced earlier this month the launch of its upgraded crypto-reward debit card, which is currently available to all U.S. residents, except those in Hawaii. Even though the Coinbase debit card has been available in 30 countries for months, only Americans have access to the enhanced crypto reward program and no longer have to pay transaction fees.
The Coinbase Visa Partnership
In October, Coinbase announced its partnership with Visa to offer a debit card that would reward users with a portion of their card purchases in crypto. Customers can choose to gain up to 4% on purchases in crypto assets Stellar Lumens, The Graph, Amp, and Rally, or 1% back in some of the more popular cryptos such as Bitcoin, Ethereum, Dogecoin, and the Dai stablecoin. Cardholders can earn cryptocurrency rewards in an unlimited amount.
Waitlist members can now access a virtual version of the card immediately and a physical card in a few weeks. The upgraded card offers U.S. users the option of paying with crypto or dollars wherever Visa is accepted. Moreover, since the debit card draws from U.S. dollars or digital assets on Coinbase, it does not require a credit check.At present, Coinbase is the largest cryptocurrency exchange in the country. On Thursday, it announced the beta launch of its own non-fungible token (NFT) trading platform, which is intended to take on OpenSea, the current leader in that space.
This Coinbase offering helps lower crypto barriers for the masses
With this crypto-reward debit card, broader adoption of virtual currencies is likely to be accelerated as it can overcome significant obstacles to adoption. According to a study conducted by Crypto.com last February, the top three barriers to cryptocurrency adoption were:
- Insufficient understanding of crypto (51%);
- Concerns about security and safety (34%)
- are followed by uncertainty as to where to buy crypto (29%).
Crypto-rewards address each of these problems by encouraging users to learn more about the cryptos they choose to earn. Coinbase insures the deposited assets as part of our security and safety procedures. Lastly, by using this simple passive crypto-earning model, new users do not have to deal with the complexity of directly purchasing crypto.
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