Coinbase has been adding value to the cryptocurrency industry in the year 2019 with many innovative programmes plus the addition of XRP and Stellar to its exchange and wallet. This time, it is announcing the use of XRP and stablecoin USDC for international payments.
The service is free, according to the announcement on Coinbase.com. A source from the company told CoinDesk that the idea is to create awareness on the use of cryptocurrencies for cross-border payments so that users can appreciate this important service that blockchain can render to them. The service is available to Coinbase users in supported countries including India, Mexico, and the Philippines.
“You can now send money to any user with a Coinbase account around the world using XRP or USDC. By using cryptocurrencies that are optimized for cross-border transmission, you can send and receive money virtually instantly by sending those cryptocurrencies and having the recipient convert them into local currency,” the company explained.
XRP is already known as the choice cryptocurrency for cross-border payments involving actual money transfer. The asset has been gaining significant popularity among businesses, individuals and even countries that require seamless funds transfer services.
Recently, India’s federal bank adopted RippleNet, Ripple’s payment tool as well as World Bank which endorsed xRapid for timely funds transfer. Of course, xRapid uses XRP as its native token and so the scope of the asset has been expanding.
It would be the first time USDC is being used for cross-border payment though since its launch by CENTRE in 2018. This is a good development for the stablecoin as the remittance industry is a growing one with a lot of potentials. If this goes well, who knows where it may lead USDC to?
Although this service is not a money remittance service but rather a cryptocurrency transfer services that enables conversion to supported local currencies, it is a good test drive for the stablecoin to see what it’s like to be used for real money remittance.
It seems Coinbase has a lot in store for this year and has just started to reveal its plans. Moving forward, we may be seeing greater things from the company as the year progresses.