It is possible to withdraw fiat money instantly through partnerships with companies that service credit cards in about forty countries, including the United States and the United Kingdom. Americans can use their Visa and Mastercard debit cards to convert cryptocurrencies, while Europeans can only use Visa. It is hoped that coinbase will soon be provided with the withdrawal of funds to the Sberbank card.
Attempts by the banking system to catch up
International and even local bank transfers can take several days. And this practice has been going on for more than a decade. With the introduction of blockchain, processing time has decreased, and has given impetus to the creation of new fast solutions.
Coinbase customers can enjoy instant withdrawals among other standard options. According to the head of the financial technology department of Visa Terry Angelos, the Visa Direct feature of Coinbase allows you to instantly withdraw money, which makes it easier and more convenient to convert cryptocurrency balances into fiat money. And these funds can be spent in many merchants that accept a Visa card.
Sherri Haymond, executive vice president of digital partnerships for Mastercard, says many digital consumers want instant payment options that meet their individual needs.
But the use of such a privileged feature is costly, with a high commission of 1.5% (minimum $ 0.55) for US customers in the US, and residents of the UK and EU countries need to pay 2%.
Coinbase takes a step towards change
This decision is great news for a company that works without compromise in the development of cryptoeconomics. On September 29, 2020, Coinbase innovated its internal policies to ban political discussions at work. And this caused a flurry of criticism from many industry experts.
The ability to instantly withdraw funds is a feature that is in great demand in the crypto community. It became especially relevant after attempts to hack cryptocurrency exchanges. For example, after the accusations by the American Commission on Futures Trading (CFTC) against the largest cryptocurrency derivatives exchange BitMEX, there was a record in the daily outflow of bitcoins. But the withdrawal of BTC from cryptocurrency wallets of exchanges does not mean that users want to convert them to fiat.