- Coinbase is a secure publicly listed exchange which facilitates seamless buying, selling and holding of cryptocurrencies.
- Coinbase recently announced that it would allow its US customers to directly deposit their paychecks into their account.
- This move comes into play when the company has been criticized by regulators over alleged wrongdoings.
What did Coinbase announce?
In a recent public release, Coinbase, one of the leading cryptocurrency exchanges in the United States of America has revealed the unveiling of its new feature. Coinbase has revealed that it will now allow its US customers to deposit their paychecks into their Coinbase account directly.
The cryptocurrency giant has planted its roots in the traditional banking industry as its newly launched functions resembles the depository functions of the banks. Although the exchange has announced its feature, the depository facility will be available in a few weeks. The roll out of this feature will integrate banking with cryptocurrencies and usher a revolution in the modern era of transactions.
Coinbase intends to improve the conditions with which people can operate on the Coinbase application. This feature comes at a time when Coinbase has faced plenty of backlash and criticism from the users about delayed deposits and withdrawal of funds. Complaints have been raised by quite a few people who have lost their funds or digital assets to Coinbase. Moreover, they have also asserted that the Coinbase customer care has not been responsive enough to resolve the complexity of the problems and unfortunate losses incurred.
The company cannot afford to have customer dissatisfaction now that it is publicly traded on the United States’ stock exchanges. Several complaints and customer dissatisfaction may cause its stock price to plummet heavily as users lose faith in the authenticity and the customer care. Coinbase’s stock is already down by 30% over concerns of regulatory issues with the Securities and Exchange Commission and the customer dissatisfaction.
What are the details of the facility?
Coinbase’s newly launched feature resembles that of a bank. Like the primary function of the bank is to accept deposits from people, the recently publicly listed company too will do the same for the ease and convenience of its customers. Amidst concerns over consumer dissatisfaction and technical glitches relating to withdrawals and deposits, Coinbase has launched this depository feature in hopes to mitigate the damage done to its public image over the months.
The feature allows US customers to deposit any percentage of its paycheck, salary or remuneration in their Coinbase account. Moreover, it is up to their discretion to deposit their paychecks in the form of fiat currency USD or in the form of digital assets of their choice like Bitcoin or Ethereum. Thus, Coinbase offers instant access to a wide range of cryptocurrencies within hours of people receiving their paychecks.
This move will also instill a sense of dynamism in the economy, highlighting that the paychecks may depreciate to inflation overtime but investing them in cryptocurrencies will lead to capital appreciation in the long-term.
In the pursuit of this feature, the giant exchange will establish a partnership with an FDIC-insured stable bank to facilitate instant deposits.
This feature will also help the company recover its image amidst regulatory threats hanging over their heads. The Securities and Exchange Commission has threatened to sue the crypto giant of alleged wrongdoings relating to the lending features.