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Exchanges like Coinbase could function like your bank and checking account you use to pay the Visa bill today. Your bill for last month is $2500 or 2500 euros,
by vmh1928 6y ago
Exchanges like Coinbase could function like your bank and checking account you use to pay the Visa bill today. Your bill for last month is $2500 or 2500 euros, you'd like to pay with a bitcoin from your account at Coinbase. Visa calculates the exchange rate at that moment and sends a debit request to Coinbase for xxx fractions of a Bitcoin to be transferred from your wallet/account to Visa's wallet. It's a way for Visa to accumulate Bitcoin for one thing.
The other way it might work is if the merchants price things in BTC. Like any other foreign currency, they take the USD from your account and pay the merchant in BTC at the current exchange rate.
- twelve40 6y agoso i used to go to a bank, show my ID, open an account, wait for a bunch of random restrictions on Zelle limits to pass, ACH payments to go through for many days, and other crap to settle. Now it's the same exact routine through Coinbase. Upload my ID, wait for them to allow me to actually move amounts more than a kid's lunch money, wait for days on end to withdraw, etc etc. And in the end some of these payments in both flows are handled by Visa. I'm missing the "wow" part of this deal.