In a recent AMA session on YouTube, the CEO of Coinbase, Brian Armstrong confirmed that the company is implementing a cryptocurrency debit card, which will be dubbed simply as “Coinbase Debit Card”. The question was asked during the heated Consensus discussion.
Armstrong talked about the value of the debit card in excruciating detail, but what was most important about his answer was the growth of the company in total. According to the CEO, Coinbase has finally reached $1 billion assets under management, also known as AUM, and has also added more than 70 companies in its list of partners. These 70 companies did not sit idly by, and contributed around $150 million of AUM a month, and are in the process of increasing that $1 billion AUM figure.
Armstrong mentioned how much the debit card will help the adoption of cryptocurrencies not only in the USA but across the whole world. And there are very few arguments against it. The pilot project in both the UK and the EU region was a success, but the jumping platform for its implementation will be the USA.
How does the card work?
As already mentioned the value of the card for a cryptocurrency investor cannot be matched by any other device. All Coinbase customers who have their assets saved on the platform’s hot wallets will be able to use the Coinbase card much like they’d use any other debit or credit card.
Day-to-day expenses can be paid through the card as well as online and offline shopping. Coinbase did mention that there will be millions of locations that will accept the card and is hoping that the acceptance is going spill out into various other countries, potentially covering the whole world.
What’s most important about the card is that cryptos can be withdrawn as cash through an ATM in currencies such as the EUR, USD, and GBP. The card will also come with an App, which allows users to choose a cryptography framework.
Additional features for the USA
The US crypto investors may be less likely to go for the card, unfortunately. The US law dictates that any type of capital gain can be taxed. And when a citizen withdraws or makes a payment with the Coinbase debit card, it will be immediately noted. This means that all of the capital gains which are now unseen by the local tax agencies will become taxable.
But most US citizens are still Ok with this small complication as liquidity for their crypto assets is imperative for them.
The overseer of the implementation of the Coinbase debit card will be the Internal Revenue Service (IRS) of the United States of America.