Coinbase's crypto debit card is launching in the U.S. and lets users earn back bitcoin
Crypto exchange Coinbase is launching a Visa debit card in the U.S. next year.
Sharing the news with The Block on Wednesday, Coinbase said it opened up a waitlist for U.S. customers who wish to get the card and will start distributing them "in the first half of next year." Debit cards for Coinbase customers are currently available in the U.K. and EU.
Coinbase Card is a Visa debit card that allows users to spend their cryptocurrency funds directly from their Coinbase accounts. The card is accepted at any retailer that accepts Visa debit cards.
Notably, the card will come with spending rewards - specifically, U.S. residents can opt to earn 1% back in bitcoin or 4% back in Stellar lumens (XLM).
Coinbase said the card's U.S. launch is a "significant milestone," as it would help expand crypto's mainstream adoption.
"Customers can make everyday purchases like coffee and lunch or can shop online directly with the crypto in their Coinbase accounts," a Coinbase spokesperson told The Block. "The utilities for cryptocurrencies are vast and have so much more potential beyond trading and investing."
The firm said that "the first customers will be approved this winter."
What makes U.S. Coinbase Card different from its U.K. and EU counterparts are the spending rewards it offers.
Coinbase, for the first time, will offer rewards in crypto for spending through Coinbase Card in the U.S. This feature isn't currently available to U.K. and EU residents.
They will also be able to spend stablecoins like USD Coin (USDC) or any other cryptocurrencies and stablecoins that Coinbase supports in the U.S.
Coinbase's U.K. and EU cards, on the other hand, support limited nine cryptocurrencies: Bitcoin (BTC), ether (ETH), litecoin (LTC), bitcoin cash (BCH), XRP, Brave's basic attention token (BAT), Augur (REP), 0x (ZRX), and XLM.
Coinbase said it wouldn't charge any fees if U.S. customers spend via USDC. Non-USDC pays, on the other hand, would be charged a 2.49% transaction fee. There are also no sign-up or annual membership fees for Coinbase Card in the U.S.
The daily spending limit for Coinbase Card in the U.S. would be $2,500, the Coinbase spokesperson told The Block. In the U.K. and EU, the card has limits of u00a310,000 or u20ac10,000, respectively.
Coinbase Card in the U.S. will be issued by MetaBank, which has a Visa U.S.A. Inc. license to issue debit cards, and the card would be powered by payments processor Marqeta.
Coinbase rival Binance, meanwhile, recently launched its own crypto debit card in the U.K. and Europe via its acquisition of crypto card startup Swipe.
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.