The EU Needs a United Regulation for Cryptocurrencies, Says the ECB

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The ECB Crypto-Assets task force group which over-watches the growth of cryptocurrencies and their potential impact on the financial system has published its May report on key events in the crypto industry.

Crypto is not a Threat to the Global Financial System

The authors of the document admit that the cryptocurrency market is currently not a threat to the EU or the global financial system. It looks like they made this conclusion when the market capitalization of virtual currencies was around $107 billion, in January 2019. However, this figure now has risen to $276.3 billion which is almost three times more than it was January.

The authors draw attention to the fact that the market capitalization of the crypto market accounts for only 4% of popular FAANG shares. Or in different measures – only 1% of EU GDP. However, despite the small share of this sector, in relation to the rest of the financial system, the ECB document still insists on a “united crypto regulation course”.

Other country regulations ineffective in the long run.

A number of uncoordinated and inconsistent approaches at other national levels may result in ineffectiveness, reads the document. The ECB considers that abandoning such an approach will result in regulatory acts disrupting “the stability of the financial system which is linked to the crypto asset market”.

For the time being, ECB researchers are the only group of regional regulators who examines cryptocurrencies as the threat of the existing financial system.

Not so long ago, the head of ECB Mario Draghi also announced that cryptocurrencies are a risky asset category, and in fact, it is not money. He then pointed out that “the size of the crypto market is not large enough for central banks to start the process of regulation”.


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Coinbase Launches a Crypto Debit Card!

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Recently Coinbase announced that they are releasing their own crypto visa card! Now it is easier than ever for Coinbase customers to spend their cryptocurrencies. At the moment, this service is only available in the UK. European Union countries are the next ones in line. 

Spend your Coinbase balance anywhere, anytime!

With the Coinbase card, users can spend their cryptocurrencies both in-store and online. Also, you will have a chip and PIN feature, which means that you will be able to withdraw your funds from ATMs. “When customers use their Coinbase Card, we instantly convert crypto to fiat currency, such as GBP, which is used to complete the purchase,” says in their blog.

However, this brings up questions. When Coinbase says “Customers can use their card in millions of locations around the world” while at the same time they’re saying that this service is only available in the UK. Does that mean that you can get the card only in the UK, and then use it all around the world? Or does the part of “all around the world” comes later?

Coinbase card app

Coinbase developed a separate app for this service. Within the app, users can choose which crypto wallets they are willing to fund their Coinbase card with. At the moment, Coinbase card supports all crypto wallets that are available across Coinbase platforms. It looks like the app will be no different to any other pre-paid visa card. Hence the users will have the ability to see instant receipts, transaction summaries, spending categories and more.

Coinbase has become the first major cryptocurrency exchange in the UK which has issued their own cards, thus allowing its customers to spend their balances right away. <– TWEET THIS!

“This card is issued by Paysafe Financial Services Limited. Paysafe Financial Services Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011(FRN: 900015) for the issuing of electronic money and payment instruments,” explains Coinbase in their blog.

Drives user adoption?

While crypto-payment VISA cards are nothing new in the cryptocurrency ecosystem, many Coinbase users have been waiting for this kind of feature. Coinbase still is one of the largest companies in user count. And this new service will come very handy to their customers.

However, why couldn’t Coinbase incorporate this feature within their existing Coinbase app? Instead of downloading yet another crypto app on my phone, I could just use the same app which I use for crypto storing. Nevertheless, when speaking about crypto adoption, this is a massive step towards it. As already mentioned above, Coinbase still is one of the top cryptocurrency apps in user count. That means that all their +20 million users now will be able to spend crypto. However, at the moment, only in the UK.

If you want to start your independant crypto journey with Coinbase, just click HERE!