Coinbase Card Expands Options with DAI: A New Era for Crypto Spending

Coinbase Card Gets a Makeover

In a move that’s shaking up the crypto world, Coinbase has added Dai (DAI), a stablecoin pegged to the dollar, to its lineup of spendable cryptocurrencies on Coinbase Card. This update, announced on December 6, makes DAI the first stablecoin on this crypto-powered Visa debit card, which already supports big players like Bitcoin (BTC) and Litecoin (LTC).

Why DAI? The Question on Everyone’s Mind

While it’s great to see DAI joining the mix, one can’t help but wonder why Coinbase opted for DAI over the plethora of U.S. dollar-pegged stablecoins. Maybe they just like saying “DAI”? Cointelegraph reached out for some clarity, but it seems Coinbase is playing hard to get for now. Stay tuned for updates, folks!

Spending with Stability

With DAI, which sticks closely to the $1 mark (yes, 1 DAI = $1), users can spend crypto with a bit less anxiety about market fluctuations. If you’ve ever cringed at the thought of spending your Bitcoin stash only to watch it skyrocket moments later, DAI could ease that fear.

A Big Step Towards Crypto Accessibility

According to JD Millwood, Coinbase’s head of growth marketing, the introduction of DAI on Coinbase Card is more than just adding another asset to the menu. It’s a calculated leap toward global adoption of alternative payment methods. Millwood asserts,

“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.”

Meet the Gang: 10 Cryptocurrencies Now Supported

The Coinbase Card isn’t just a one-trick pony! Launched in April 2019, this nifty debit card lets users spend crypto for everyday purchases or snag cash from ATMs, with a dash of magic converting crypto into fiat in an instant. It kicked off in the UK and later expanded into six European countries: Spain, Germany, France, Italy, Ireland, and the Netherlands. Now, it proudly supports ten cryptocurrencies, including:

• Bitcoin (BTC)
• Ether (ETH)
• Litecoin (LTC)
• Bitcoin Cash (BCH)
• XRP
• Basic Attention Token (BAT)
• Augur (REP)
• 0x (ZRX)
• Stellar Lumens (XLM)
• Dai (DAI)

DAI: A Unique Beast in the Stablecoin World

So, what’s the deal with DAI? Unlike traditional stablecoins that often rely on bank reserves (looking at you, Tether), DAI does things a bit differently. It’s generated through a complex setup where Ether is put into a Collateralized Debt Position (CDP) smart contract. This makes DAI not only an intriguing option but also an example of innovation in the stablecoin realm.