Coinbase is launching its Visa debit card in the U.S. early next year.
The card will be available in all states except Hawaii and comes with a new rewards feature – 4% back in stellar (XLM, -3.92%) or 1% back in bitcoin (BTC, -3.50%).
Coinbase Card has been active in the U.K. and European Union since April 2019 and currently operates in 30 countries. The card’s planned U.S. rollout comes on the heels of PayPal’s entry to the cryptocurrency sector, with the fintech giant opening bitcoin payments to its network of 26 million merchants.
American customers will be able to manage their cards directly through their Coinbase accounts. Any cryptocurrencies that Coinbase supports in the U.S. (and that a user holds in their account) can be spent through the debit card.
“Industry trends illustrate increased consumer activity,” Coinbase spokesperson Crystal Yang said in an emailed statement. “Now Coinbase is taking mainstream adoption of crypto one step further by introducing Coinbase Card in the U.S.”
The card is issued by South Dakota-based MetaBank and powered by payments platform Marqeta.
Stepping back, cryptocurrencies in the U.S. are treated like property, and the Internal Revenue Service (IRS) taxes their capital gains whenever they’re bought and sold. Coinbase did not respond to questions about how the company would account for U.S. tax laws with the new product.