Announcement
- Up to 4% back in crypto rewards
- Spend crypto everywhere Visa debit cards are accepted
- Coinbase automatically converts your crypto to U.S. dollars for purchases and ATM withdrawals
- No annual fee
Reward Scheme
Customers who make purchases with the debit card will receive rewards in the form of a 1% rebate paid in Bitcoin, or a 4% rebate paid in a more obscure cryptocurrency. At the outset, the 4% reward option will come in the form of XLM, also known as Stellar Lumens, with other reward options to be introduced in the future. The card looks like this:
This reward system could help overcome another drawback to spending cryptocurrency, which are the fees. For every transaction using the debit card, Coinbase will charge a 2.49% levy.
This fee makes using the debit card an unattractive option in terms of value—especially since some credit cards offer 2% cash back in rewards with no fees—but there is an important exception.
The exception is when Coinbase customers draw on their USDC accounts. USDCs are a type of cryptocurrency known as stablecoins, which are pegged to the U.S. dollar at a one-to-one value. In practice, this means Coinbase users can go shopping with their USDC accounts with no fees while earning 1% in Bitcoin (or 4% in a more exotic cryptocurrency).
Spending USDC or other stablecoins also offers an upside compared to other cryptocurrencies in that such purchases won't trigger a taxable event—which is the case under current IRS rules for Bitcoin and other forms of digital money.
Value Proposition
- Resources
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Tags
Now get your paycheck deposited into Coinbase | by Coinbase | Sep, 2021 | The Coinbase Blog
