Cryptocurrency: Coinbase adds new banking feature to allow users’ paycheck deposit

Coinbase is diving deeper into banking with the introduction of its newest feature. The cryptocurrency exchange operator just announced it added a function that will allow users to directly deposit their paychecks into their accounts.

This means that they can now choose to convert part of their money into cryptocurrencies by depositing them into their Coinbase crypto accounts. They can directly deposit their paychecks and turn them to cryptocurrencies such as bitcoin for free as there are no fees for this new financial service, as per CNBC.

“With more of their spending, earning, trading and borrowing happening on Coinbase, customers will need simpler ways to fund their Coinbase accounts,” Coinbase vice president of product, Max Branzburg, said in a blog post that was published on Sept. 28. “In the coming weeks, we’ll launch the ability for customers in the U.S. to get paid into Coinbase.”

He added, “Customers can get paid in crypto or U.S. dollars and can choose any percentage of their paycheck to deposit. With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase.”

Branzburg also said that Coinbase’s goal is to offer the best financial services that the public is used to, but in a better way through the use of crypto and blockchain technology. Moreover, he explained that financial services built on crypto could potentially offer fairer and equal access to funds and other assets for anyone and anywhere.

Coinbase is expected to launch this new paycheck deposit feature in the coming weeks. It was noted that this function was developed after customers lamented that it is very inconvenient and time-consuming for them to make transfers from their bank to Coinbase accounts.

At any rate, Prakash Hariramani, Coinbase’s senior director of product, shared in a separate blog post that to offer this new service to users of their cryptocurrency exchange platform, they have teamed up with several companies, including Fortress Investment Group, M31 Capital, Nansen, and SuperRare Labs. The partnership with these firms will “allow employees throughout the creator economy and financial services to enter the future of payroll.”

Finally, when Coinbase rolls out the paycheck deposit feature, users can pick which cryptocurrency they would like their wage to be converted to or keep the sum denominated in U.S. dollars. They have the option to convert their money to Bitcoin, Ethereum, and USD Coin.