Coinbase wants to offer credit cards, payments, and savings — all powered by crypto.
- CEO Brian Armstrong says Coinbase could replace traditional banks.
- A 4% Bitcoin rewards card and DeFi-based yield options are in development.
- Coinbase supports new U.S. crypto laws like the GENIUS Act.
Coinbase Wants to Be Your Main Financial App
Coinbase CEO Brian Armstrong says the company wants to become a full-service financial app. It would let users send payments, earn rewards, borrow, and spend — just like with a bank. But instead of using regular dollars, it would use cryptocurrency.
“We want to become people’s primary financial account,” said Armstrong in a recent interview. He believes current banks are slow and expensive. Fees on credit card payments, for example, annoyed him. “Why are we paying 2% to 3% for digital payments?” he asked.
4% Bitcoin Credit Card Is Part of the Plan
One key feature in Coinbase’s plan is a new credit card. It would offer 4% Bitcoin rewards on purchases. This would be higher than many traditional cards. Armstrong says this is just the beginning. The long-term goal is to compete directly with major banks.
Coinbase already works with large banks like JPMorgan and PNC, but the CEO believes crypto services should be treated equally by regulators. He said, “We’d rather that they just operated on a level playing field with every other company.”
DeFi Integration Boosts USDC Yields
In a new update, Coinbase added access to a DeFi tool called Morpho. This lets users lend their USDC stablecoins directly through the app. Some users could potentially earn up to 10.8% in yields without using other DeFi platforms.
This comes at a time when U.S. rules, like the GENIUS Act, placed limits on yield-bearing stablecoins. Critics say Coinbase’s method may be a loophole. But the company says it’s just offering a better option than traditional banks. They argue stablecoins are modern tools, not a threat.
Regulators Are Starting to Support Crypto
Armstrong praised the U.S. government’s recent progress in crypto laws. He mentioned how legislation like the GENIUS Act is helping clear the way for innovation. He said, “The freight train has left the station” when it comes to regulation.
With clearer laws and better tools, Coinbase wants to take on traditional banks. If successful, it could change how people spend, save, and invest their money using crypto.
Source: cointelegraph.com
