Crypto exchange Coinbase (COIN) -1.26% announced on Twitter (TWTR) -1.74% that its US customers will be able to deposit their pay-checks into Coinbase as cryptocurrency or US Dollars. CEO Brian Armstrong called the new feature “one step closer to crypto payroll” (Twitter, 2021).
💰The future of payroll is coming
— Coinbase (@coinbase) September 27, 2021
🔜We’re rolling out the ability for US customers to deposit any portion of their paycheck into Coinbase as crypto or US dollars https://t.co/1X9bB3859b
Depositing their pay-checks directly into Coinbase will let users easily exchange their money to crypto without paying transaction fees. There is a limit of how much users can exchange.
In a Blog post on Monday, senior director of product at Coinbase, Prakash Hariramani said: “The future of payroll is coming,” (Business Insider, 2021). “Get paid in crypto or in US dollars and deposit as much or as little of your paycheck as you want.”
Hariramani explains the reasons behind the new product as giving users the option to make short- or long-term investments or to allow them to earn interest on yield generating assets. Mostly importantly, however, the launch will make transferring easier and more convenient.
“Now, you’ll save time on the extra steps it takes to move money so you can immediately earn interest on your income,” (Business Insider, 2021) Prakash Hariramani continues in the blog post.
Clients will never have to leave the Coinbase app when setting up their crypto payroll. All they need to do is click “direct deposit” in settings and follow the instructions given. Coinbase will ensure the pay-check allocation is updated.
Coinbase has teamed up with Fortress Investment Group, M31 Capital, Nansen and SuperRare Labs to allow their employees to benefit from the feature.
Coinbase has made it its goal to integrate digital assets into traditional banking seamlessly. Since the company went public in April, it has announced multiple launches of crypto banking ideas. The latest, Lend, a crypto lending program, got them into some hot water with the US watchdog, SEC.
After some strongly disapproving words from CEO Brian Armstrong about how the SEC has been dealing with crypto, and an equally strong defence from the watchdog, threatening to take the crypto exchange to court, Coinbase has abandoned Lend.
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*Stock percentages taken on 28.09.2021 at 09:40
*Lee, Isabelle (27. September 2021). Business Insider: Coinbase will let you direct-deposit your paycheck and convert it to crypto. Last viewed on 28.09.2021 on https://markets.businessinsider.com/news/currencies/coinbase-direct-deposit-paycheck-salary-cryptocurrency-no-transactino-fee-usd-2021-9.
