Coinbase has introduced a significant upgrade for its UK customers: the ability to buy and sell cryptocurrencies using British pounds (GBP). This development eliminates the need for euro conversions and allows for quicker deposits and withdrawals.
Initially available to a limited group of users in the UK, the feature is expected to roll out nationwide within days.
Supported by Faster Payments
The new GBP transaction channel is powered by the UK's Faster Payments system, known for its rapid processing times. Transactions through this system have a per-transfer limit of £250,000.
In communications, Coinbase clarified that there is no cap on the amount users can receive. However, larger transactions might require alternative systems like CHAPS, which are slower and more expensive.
Benefits for UK Users
Previously, Coinbase customers in the UK had to navigate slow and costly international bank transfers. The old process often involved high fees—sometimes up to £25 per transaction—and lengthy waiting periods.
The new system offers several advantages:
- Eliminates conversion fees: No more charges for converting between euros and pounds.
- Faster processing: Deposits and withdrawals are completed much more quickly.
- Improved convenience: A streamlined experience for buying and selling crypto assets.
This is particularly beneficial for active traders who require quick access to their funds. A faster, more efficient payment method enhances the overall user experience. For those looking to dive deeper into trading strategies with these new capabilities, you can explore more advanced trading tools.
Future Expansion Plans
Coinbase has expressed its intention to introduce similar improvements in other countries and regions. A company spokesperson noted that while the Faster Payments program is currently exclusive to the UK, the goal is to provide the simplest methods for converting fiat currency to cryptocurrency for a global clientele.
The company is committed to investing in the necessary partnerships and infrastructure to achieve this worldwide.
Impact on Crypto Adoption
By simplifying the process of converting GBP to cryptocurrency, Coinbase is also encouraging the use of digital assets for everyday spending. A smoother on-ramp and off-ramp makes it more practical for users to spend their crypto at merchants that accept it.
This move represents a positive step toward broader cryptocurrency adoption in the UK market.
Frequently Asked Questions
What is the new Coinbase feature for UK users?
Coinbase now supports buying and selling cryptocurrencies directly with British pounds (GBP), bypassing the need for euro conversions and enabling faster transactions.
Are there any limits on transaction amounts?
While the Faster Payments system has a £250,000 per transfer limit, there is no limit on the amount you can receive in your Coinbase account. Larger transactions may be processed through other systems.
How does this benefit a crypto trader in the UK?
It removes currency conversion fees, significantly speeds up deposit and withdrawal times, and simplifies the entire process of moving money between a UK bank account and a crypto wallet. For those ready to take advantage of these faster payments, you can get started with a secure platform here.
Is this service available outside the UK?
No, the Faster Payments service is specific to the UK banking infrastructure. However, Coinbase has stated it aims to develop similar convenient fiat on-ramps in other regions globally.
What was the old method like for UK customers?
Previously, users relied on international bank transfers, which were often slow, involved multiple steps, and incurred high fees for currency conversion and processing.
Does this make it easier to spend cryptocurrency?
Yes, by making it faster and cheaper to convert GBP to crypto and back, it reduces the friction for users who want to use digital assets for purchases at supporting merchants.