Coinbase Card, a crypto-powered Visa debit card from major crypto exchange Coinbase, now supports Dai (DAI), a stablecoin pegged to the United States dollar.
According to a blog post on Dec. 6, Dai is the first stablecoin that is available on Coinbase Card, alongside major cryptocurrencies such as Bitcoin (BTC) and Litecoin (LTC).
As 1 DAI is equivalent to $1, the addition of the stablecoin to the Coinbase Card aims to allow customers to spend crypto with less volatility, the announcement says.
Cointelegraph has requested comment from Coinbase’s team on why the company has decided to choose DAI rather than one of multitudes of U.S. dollar-pegged stablecoins. Coinbase has not responded as of press time. This article will be updated upon receipt of their commentary.
More than one new asset to spend
However, the addition of DAI is not just one more asset to spend but a tool intent on boosting global adoption of alternative payment methods, according to Coinbase’s head of growth marketing, JD Millwood. He wrote:
“It represents a small step on our big journey to make crypto accessible to all, through alternative payment options that suit our diverse customer base.”
Coinbase Card now supports a total of 10 cryptocurrencies
Launched in April 2019, Coinbase Card is a Visa debit card that allows users to spend cryptocurrencies to pay for goods as well as to withdraw cash from ATMs. Instantly converting customers’ crypto into fiat currency, the card was first rolled out in the United Kingdom. In June, the card was launched in six European countries including Spain, Germany, France, Italy, Ireland and the Netherlands.
According to the Coinbase’s official website, Coinbase Card now supports a total of 10 cryptocurrencies including Bitcoin, Ether (ETH), Litecoin, Bitcoin Cash (BCH), XRP, Basic Attention Token (BAT), Augur (REP), 0x (ZRX), Stellar Lumens (XLM), and Dai.
Dai is different from major U.S. dollar-pegged stablecoins
Meanwhile, DAI is one of many stablecoin projects pegged to the U.S. dollar alongside controversial project Tether (USDT), Gemini Dollar (GUSD) and USD Coin (USDC).
However, DAI is different from a typical currency-backed stablecoin because it is not supported by bank accounts of reserve currencies but rather is generated by putting Ether into a CDP smart contract, as previously reported.