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Dai, one of the world’s most significant stablecoins, has just taken a further step which could help it replace traditional fiat currency. According to a news release issued by the popular cryptocurrency exchange, Coinbase, the platform’s debit card will now be supporting Dai as payment currency.
Coinbase’s VISA debit card has only been launched in 2019, but has proven to be rather popular. Currently, it is only available to residents within the EU, including the UK. The card, which can be used online and in-store, already supports Bitcoin, Ether, Litecoin, XRP, Basic Attention Token, Augur, Stellar Lumens, and 0x currencies. Dai will represent the card’s 10th asset and first stablecoin.
With the announcement of this new partnership, Coinbase Visa holders who live in Europe can start buying goods and services and paying for them with their Dai currency. In this way, the stablecoin will be one step closer to fulfilling its primary goal; to allow users to use stable cryptocurrencies as an alternative to traditional money.
With each Dai worth around $1 USD, using the currency will provide significantly less surprise or regret than using a volatile currency, such as Bitcoin or Ether. As a result of their high volatility, these cryptocurrencies have proven to be very attractive to day traders and investors, whereas coins such as Dai have been mostly overlooked by such individuals. This has helped their price remain stable, whilst other currencies skyrocketed or took a dive.
The move by Coinbase to adopt Dai within its supported currencies comes partly as a result of a rebranding exercise. In fact, the coin’s development team has been hard at work promoting the “dollar coin’s” image, which is easily relatable by those external to the crypto community.
It is hard to tell at this stage what effects, if any, Coinbase’s announcement will have on the use of crypto as the currency for online and in-store sales. However, Dai has a distinct advantage over the US dollar – it already exists within Blockchain technology.
Only recently, the U.S. Treasury Secretary, Steven Mnuchin had dispelled any rumours that the dollar was going digital. In fact, Mnuchin has confirmed that there are no plans to put the United States Dollar into the Blockchain in the short or medium terms. This means that users would have to turn to cryptocurrencies to purchase goods or services, such as decentralised applications and smart contracts, which only function in a distributed ledger.
While thousands of cryptocurrencies exist, Dai is considered to be a potential frontrunner, in part due to its stability, but also because of its close association with Ethereum. Moreover, it is easily accessible, available not only from Coinbase but from several other cryptocurrency exchanges and trading platforms.