According to the company’s website, Coinbase is reportedly offering its users a payment service that’s “fast and free” to transfer funds overseas using USDC and XRP. USDC was launched last year by CENTRE, a Circle affiliate, and was the first stablecoin to be registered and offered to users on Coinbase. XRP was added to the Coinbase offering in late February in a move that has been long pushed for by the Ripple community.
Free Transactions to Coinbase Users
Coinbase users will be able to send these coins for free when sending funds to other Coinbase accounts. However, the company will still levy a “nominal on-chain network fee” if users are sending outside of the network.
An explanation on the Coinbase website states that clients “ can now send money to any user with a Coinbase account around the world using XRP or USDC.” It also underlined the importance of utilizing cryptocurrencies that are developed specifically for cross-border transmission. With it, customers can send and accept money almost instantly by using cryptocurrencies and having the receiver change them to the local currency.
Not a Money Remittance Service
Coinbase also emphasized that they’re not offering a money remittance service, but described it as “a cryptocurrency transaction with conversion into local currency after receipt.” It also stated that in countries with currency not supported by Coinbase, the recipients have to transfer their USDC/XRP to an exchange that offers a cryptocurrency to local currency transaction.
Some confusion later came out with regards to Coinbase’s official announcement of the service. A company spokesperson later clarified via email that the service had been offered since Feb 28 when XRP was added to its offers. According to the company’s representative, the service was designed primarily as an “educational resource” that will help customers learn more about the advantages of cross-border payments using crypto.