Coinbase Launches International Payments Service
The major US cryptocurrency exchange Coinbase announced recently that it had launched an international payments service. According to the company’s website, this will be a free and fast service for its customers.
Transferring Funds Around the World
Going forward, the exchange’s customers would be able to transfer their funds to any other user of the platform via a Coinbase account. They would also be able to do so using either the XRP (Ripple) token or the exchange’s stablecoin USDC (USDCoin), without being charged a fee for it.
However, if customers wished to use this service to send funds outside the Coinbase user network, then they would be charged a nominal fee.
Coinbase stated that by using cryptocurrencies that were optimized for international settlements, customers would be able to transfer and receive funds across the globe instantly. It would also allow users to convert those funds into local currencies.
The exchange clarified on its website that this was not a remittance service. Rather, it was a crypto transaction that offered conversion into a local currency after receiving the funds.
Coinbase also stated that in countries where Coinbase did not support the local fiat currency, users would need to transfer the XRP or USDC they received to another exchange that supported exchanges from XRP or USDC to their local currency.
After the story broke, a Coinbase spokesperson issued a statement via email that this service had been available since February 28, when the exchange had added support for XRP. The representative stated that this service was actually designed more as an educational tool so that customers could learn about the benefits of using cryptocurrencies for cross-border settlements.
Multiple New Developments at Coinbase
The month of March was a busy month for the exchange, with multiple new developments coming through. One was the launch of a new service that linked users’ accounts on the main Coinbase platform to the new Coinbase Wallet app.
Another was the introduction of a new market structure for Coinbase Pro, the exchange’s professional trading platform. This new structure was introduced to increase liquidity and price discovery, as well as enable smoother movements in prices.
Last October, Coinbase had added support for its stablecoin USDC, which was the first of its kind to be traded on the exchange’s platform. Launched by Circle’s affiliate firm, CENTRE late last year, this coin is reportedly 100% collateralized to US dollars.