Mark Weaden
Major cryptocurrency exchange Coinbase is offering customers the option to add direct deposits into crypto accounts
Coinbase is one of the biggest exchanges in the world and has positioned itself to begin taking direct deposits in the U.S., which will allow users to have their paychecks deposited into their Coinbase account. Customers will be able to pay in part or in full directly into their crypto account.
The move is very exciting for crypto holders and a big step in the right direction for those that prefer to make their savings in decentralized finance (DeFi). The ability to convert part or the entirety of a paycheck or salary into cryptocurrencies, rather than United States Dollars (USD) is a first for major exchanges in the States.
How will the system work?
Coinbase users will be able to select the amount of their salary to be converted into cryptocurrency at any time, adjusting the figure as they see fit. The flexibility this provides is particularly appealing, as customers can keep fiat currency to pay for certain things that will add to their accounts for trading and investing. While it’s true crypto holders can now paying using crypto cards, this still isn’t fully integrated and for the most part crypto holders looking to invest rather than purchase using digital assets.
As industry leaders, Coinbase eyes creating an entire financial ecosystem around cryptos, bringing them into the mainstream and allowing enthusiasts to manage their entire financial portfolio in digital assets. This is no easy feat, but allowing customers to convert fiat into crypto without incurring fees is a huge step for this vision. A comprehensive adoption of cryptocurrency is the goal, but there are many hurdles to seeing full-scale acceptance.
One of the biggest obstacles is the disruption of the current financial ecosystem. The world is built around the current system and a company coming in and tearing up the plan isn’t going to happen without heavy resistance. It will be interesting to see what regulators have to say about this announcement. Nonetheless, the direct deposit offer will certainly help to drive crypto into the mainstream, working with major payment companies like M31 Capital Nansen, as well as a handful of others to help employees make payments into crypto.
The next step is to see how many employees actually opt to make payments in crypto. If active crypto deposits take off, Coinbase may see a huge influx of sign-ups. We are likely to see the product evolve, with a host of new features to the platform facilitating payments in an attempt to bring cryptocurrency to the masses.
