Cryptocurrency enthusiasts may soon be able to have their pay checks deposited directly into Coinbase, which is collaborating with major payroll and HR firms to enable millions of workers to receive cryptocurrency payments

Coinbase is one of the world’s largest and most popular cryptocurrency exchanges said on Monday that it will enable users to deduct their pay automatically in Bitcoin or another cryptocurrency.

In a blog post, Coinbase’s vice president of product, Max Branzburg, stated: “With direct deposit, customers can more easily access our crypto-first financial services and be ready for any trade or purchase.”

He adds, “We’re determined to deliver the most trusted full suite of crypto-first financial services to our 68 million users.”

The company has announced plans to expand the service so that users can utilize the platform for more financial services. The service will be available in the next few weeks, according to the company.

Deposits can be made in US dollars or instantly converted to digital currency incurring no costs. Direct deposit will solve concerns that making a regular transaction is too time-consuming.

By following a few simple steps in the Coinbase app, users may create and change direct payments. Coinbase can automate paycheck distribution or send instructions to a company’s payroll system to allow for manual deposits.

As the firm has tens of millions of consumers in the United States, the new direct deposit option is a huge milestone for the crypto business. Even if only a small amount of people sign up, the overall demand for Bitcoin and other digital assets could rise.

The move comes as the cryptocurrency exchange faces greater regulatory scrutiny for its handling of digital currencies. Also, a slew of financial start-ups is competing for customers with traditional banks. Moreover, financial companies such as PayPal, Venmo, Square, and SoFi have been swiftly implementing crypto functionality.

Pavan A

CBW - External Analyst

INDIA