Brian Armstrong is the CEO of Coinbase. Brian van der Beek—Bloomberg via Getty Images
Coinbase on Tuesday announced changes to its decentralized wallet product aimed at making the service more streamlined and easier to use. The most important of these is a new feature that allows Wallet users to transfer funds by a simple text message via Telegram or WhatsApp or any other platform where they can send a link.
The text messaging feature will make Coinbase Wallet, a decentralized product different from the administrative “wallets” people use on exchanges, more useful to a broader group of people, the crypto giant said. It’s part of a broader effort.
In an interview with luckChintan Turakia, head of Coinbase Wallet, said the ability to send money via text is part of the company’s “financial freedom” vision. This includes allowing users to send USDC stablecoins to each other for free.
Customers can already send USDC (which Coinbase co-owns with Circle) for free in Coinbase Wallet, but they must know the name of the recipient’s wallet address. The new texting feature eliminates that requirement and actually makes it much easier to add money when texting friends and family in another country.
For those who received USDC via text, the link will open directly in their Coinbase wallet. If the person does not have a wallet, you will be prompted to install the app and receive your money with one click (if you do not have a wallet open). The funds will be returned to the sender after two weeks). Below is an image of the service in action. You can see it step-by-step in the company’s blog post.
One of the notable features of Coinbase Wallet is that since this is a software that puts control of your private keys (passwords to unlock your wallet) in your hands, there is a “Know Your Customer” process that must be completed before use. There is no process.
While this sounds like it could cause regulatory issues, Coinbase says that users, not companies, are ultimately in control of their funds, meaning this activity is outside the company’s scope of responsibility. There is. Coinbase added that the main approach against bad actors in this context is to block the use of the Coinbase Wallet in territories that are sanctioned by the Treasury Department.
Meanwhile, the company also rolled out a “simple mode” for Coinbase Wallet, eliminating more complex tools and narrowing the service down to the core functionality of sending and receiving money.
In addition to USDC, Coinbase Wallet users will be able to send Bitcoin and other cryptocurrencies using new messaging features. However, doing so introduces additional complexity by requiring customers to sometimes pay network fees that exceed the amount of the transaction or to conduct the transaction on a so-called layer 2 blockchain.
Coinbase also said that nnit supports fiat onramp, a banking service that allows users to enter and exit the cryptocurrency ecosystem, in over 130 countries. This combination of accessibility and easy-to-use messaging services could help increase the popularity of cryptocurrencies as quick cross-border payment solutions. This has been a long-held aspiration of Coinbase and the cryptocurrency industry, but it has been slow to catch on. Practice.
Coinbase Wallet’s new features will begin rolling out on Tuesday and be available to everyone by the end of the week.