I was an early adopter of the old internet, the original 1990's product. How early? I had an internet account when the only way to do so was to sign up through a service known as Delphi and a single image on a web page was a huge deal.
I bring that up because I loved the original, say what you want, do what you want internet, and I hate what it has become. I don't know if there is any way to re invent the old free speech 'net, but I feel like it is worth a try.
And that is why I became interested in crypto, not because I am trying to get rich quick, but because one of the ways the internet is controlled and censored is through the banking and credit system. Say something someone doesn't like? You will find that you can't spend or buy using the banking system online. You will not be able to put ads on your content, and you'll be lucky if you can find a host for your content.
So what does this have to do with the Coinbase ATM card? The weak link of crypto is it is utterly impractical for everyday use by the average person. One of the reasons is the technical complexity of moving coins around, and some of it is the fees. Technical issues are for another day, let's talk about fees.
It seems like every time you buy, sell or move a coin you lose a serious percentage of it. Crypto has to compete with something like my stockbroker, Fidelity. Through my account there I can buy or sell any listed security with no fees, they provide me with a checking account and ATM card I can use with no fee, and if an ATM has a separate fee they reimburse me for it. Compare that to a crypto transaction where buying a coin and sending it to someone else's wallet can eat up 20% of the value in the blink of an eye. Nobody who understands money is going to use such a product for daily commerce.
So I was interested when Coinbase announced they would be offering an ATM card you could use with your Coinbase account, and would even be offering cash back. I jumped on the waiting list day one. By the way if you are wondering how you can get cash back on a no fee card, it's because ATM card providers can charge up to 4% per transaction to the merchant for the use of the card. Which is also why some merchants have a price for cash and and a higher price if you use a card.
A few weeks ago I got my card. It looks and acts exactly like any other ATM card with a chip. To use it you have to have USDC (US Dollar Coin) in your account, which is of course pegged to the value of the dollar. If you have a bank or credit union account linked to your Coinbase account there are no fees for moving US Dollars.
Activating the card was just like any other ATM card, provide a PIN etc., then there are two differences. As I mentioned the card needs to be funded with US Dollar Coin. So here I was on the lookout for fees again, but this coin has no purchase fee on Coinbase, So I moved $200 from my credit union to Coinbase, bought USDC with it and put those coins on my card, so far no fees.
The next step which is different from the average bank card is picking your cash back option, they offer five coins to get you rewards in. Stellar Lumens (XLM), The Graph (GRT), Bitcoin (BTC but you knew that), Ethereum (ETH) or Doge (Doge!?).
If you choose XLM or GRT you get 4% back, all the other coins allow you to get 4%, that's right 4% back on whatever you spend. I am not sure why the return is so high on XLM and GRT, but I have noticed in the past Coinbase has pushed those heavily (with giveaways for watching videos on them) as low fee ways to move money. I recalled using XLM some time ago and being shocked at how tiny the fees were when I moved it from one wallet to another. So I decided to go with XLM.
I am really dubious about crypto deals, I was fully expecting a fee somewhere, but no, I went out and used the card just like I would any other ATM card, the money was deducted and all was well. No fees and I got my 4% back on my Coinbase account. As long as you use it at point of sale (as opposed to withdrawing ATM cash) this is truly a way to practically use crypto in your everyday life. I think this is a huge breakthrough.
So my final opinion on this? Five stars, two thumps up, A++++ take your pick. Everyone who is serious about promoting crypto, AND getting 4% return on their purchases, should have a card like this. This is now my go to way to handle daily purchases.
Which is another plus, I get paid in to my bank account, pay bills etc. then load my "spending money" on to my Coinbase card, it's a super easy way to manage your spending money and keep in distinct from your other household funds.
Maybe it's because I have bitched about fees and the impracticality of crypto in the past that I am so excited about this. So why are you still reading this, go apply for a card!
Note: This is written from the point of view of an US citizen. I realize the crypto space is worldwide and the banking experience is completely different in many other countries. Also I have no interest in Coinbase other than being an average account holder.