Coinbase Launches International Payment Transfer Using XRP

Coinbase Launches International Payment Transfer Using XRP

new service

Coinbase now offers a new service which is labelled “international” on the exchange’s platform, based on a recent report. The launching of the service was done on a low key.

Sending Money Globally Using XRP

The service uses a stablecoin launched by Coinbase, CENTRE partners, Circle, and XRP (Ripple) which was added as of recent. According to the advertisement, the product sends money internationally for free thereby ensuring that digital assets are sent overseas almost instantly to countries which support Coinbase and then convert it to their local currency.

All the aforementioned features may make the product sound like a blockchain- enabled one but that is not the case as the exchange carries out the transactions for free within its own books rather on-chain.

A representative, while explaining the reason for creating the product described it as “primarily designed” to be an “education resources” for consumers to know more about the advantages of using cryptocurrencies be it XRP, Bitcoin, or more, in cross-border payments.

Although the company might have done it out of logical reason, Coinbase’s decision to retain Ripple-tied USDC and XRP is a major turn off for Bitcoin supporters, many of which already dislike the company.

Controversial Crypto Product

Although the product’s proposal is fully logical, some people had problems regarding its choice of digital currency. Recently, an analyst at The Block, Larry Cermak expressed his disgust towards Coinbase on social media platform, Twitter. He stated that: International doesn’t really make sense and then asked why the exchange did not add Ethereum, Bitcoin or other digital currencies in rapid succession.

He further explained that the speed of 10 minutes or 10 seconds at which XRP operate is not a real solution to the problem posed by remittances which seem to be Coinbase’s target audience.

Moreover, he said that adding Bitcoin is only logical, as it has the largest network effect and the most amount of infrastructure, especially fiat off-ramps.