Bitcoin Bank Approaches Coinbase UK And Adds Pound Sterling
The realization of a bitcoin bank in the UK is getting closer and becoming a reality. On July the 31st, Coinbase announced support for the currency of the UK. The possibility to use this currency on Coinbase’s platform is already available for some of its customers and will be extended to the rest in the coming weeks.
Coinbase To Trade In Pounds Sterling
The new measure is designed to make it easier for Coinbase customers in the UK to deposit and withdraw pound sterling, so users can now buy and sell cryptocurrencies directly. This measure was described by Coinbase's CEO in the UK Zeeshan Feroz, as “progress towards becoming a leading bank account” for its users.
GBP support means that Coinbase users will have access to the UK's Fastest Payments system. This translates to same-day deposits and withdrawals, with most transfers being made almost immediately.
So customers in the UK will no longer have to convert funds from pounds sterling into euros and vice versa into incoming or outgoing cash. And there will be no more exchange rates or SEPA (Single Euro Payments Area) fees, which can sometimes be as high as 10 euros per transaction.
How Is Coinbase Currently Doing?
It is believed that access to faster payments will be more useful for the company's commercial and institutional accounts, allowing investors to move in and out of their positions more quickly.
Coinbase, which obtained an e-money license in the UK in March, previously partnered with the local bank Barclays for customer deposits and withdrawals.
Coinbase, after boasting its business in the European Union (EU), grew at twice the pace of any other market last year. At the same time, the company announced a digital gift card program in an attempt to launch some of its dormant accounts, giving customers in Europe an alternative way to collect their cryptocurrencies.
Coinbase is trying to expand in Europe and Asia and adding support for UK’s currency is part of its broader strategy to reach new customers in the European Continent.
So much work finally paying off! Our team is incredible 👏 https://t.co/9jWgvq8wxE
— Brian Armstrong (@brian_armstrong) August 2, 2018
The New Crypto Banking Paradigms
Charging for cryptocurrency remains a major headache for new users who subscribe to bitcoin and cryptocurrency changes, including Coinbase. Many users have complained that it is much easier to deposit money than to withdraw it, often requiring them to verify their traditional bank accounts before extracting funds.
This process can take a few days and people often end up leaving their cryptocurrency deposited in their exchange account. Something that could become a problem if the platform were to suffer a hack or other technical problems. Coinbase's move to support the pound is likely to make this process smoother, although it will not completely resolve it.
The company is working to simplify this, according to Zeeshan Feroz, and will make a new announcement in the coming months.
How's Crypto Market?
Although this is positive news for the use of bitcoin and cryptocurrencies, it is unlikely to reverse the downward trajectory that bitcoin and many other important cryptocurrencies have had at least this week.
The price of bitcoin has dropped over 10% in the last three days, almost erasing its gains over the last month. In July, the price of the famous virtual currency grew and was traded around $8,300 dollars. At the moment of writing this article, Bitcoin is the most important virtual currency and has a price of $7,700 dollars. Its market capitalization is $132 billion dollars.