US leading cryptocurrency exchange Coinbase aims to become customers’ preferred financial application. Coinbase CEO Brian Armstrong outlined the company’s approach to launching new features in a recent report on CNBC.
The updates aim to model their usage so that customers are more willing to settle debts and accumulate loan interest through their cryptocurrency accounts rather than through the banking system.
“In traditional banking, fractional reserve practices are standard and heavily regulated. We don’t intend to be a bank. We just want our customers to use us as their primary financial system. Money is changing its nature, and things on paper are ultimately becoming electronic and mobile. The new generation will stop using cash and credit cards, and phones will be used as bank accounts.”
Read more:
“People’s interest in NFTs has returned – Ethereum leads the rankings again.”
These phones will serve as virtual wallets, allowing users to transfer funds, track daily expenses, and even take out loans. Coinbase sees a great opportunity here.
“We’ve made some progress with products like the Coinbase Card, which supports payments and maintains a balance in US dollars. In the future, we expect to add features like bank transfers or direct deposits, which will make us a primary financial account,” Armstrong said. He then highlighted the significant number of traditional financial companies already adopting cryptocurrencies.
“Our surveys of senior executives at these companies show that cryptocurrencies have become the preferred technology for 56% of Fortune 500 companies. For example, BlackRock tokenizes physical assets, JPMorgan uses blockchain in Onyx, Google Cloud accepts cryptocurrency payments, and young fintech companies like Stripe and PayPal use stablecoins. So, it’s clear that cryptocurrencies have become a major component of the financial sector, with major companies using them in one way or another,” Armstrong shared.
