Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
In a Reddit ask-me-anything session, Brian disclosed that any digital asset can find its way on their exchange as long as the listing standard is met.
The Central Bank Digital Currency (CBDC) is being explored by several countries with the likes of China and Korea in an advanced stage. The CEO of Coinbase Brian Armstrong has cleared the air with their position on digital currencies, including CBDCs.
In a Reddit ask-me-anything session, Brian disclosed that any digital asset can find its way on their exchange as long as the listing standard is met. This was in response to a question about how the CBDCs serve the purpose of the full integration of cryptocurrency payment into internet services.
Coinbase CEO Speaks about CBDCs
According to Armstrong, CBDCs are a very important development and have a good chance of becoming big. He explained that many governments have a good understanding of its benefits in digital finance and are exploring the possibilities of building them.
As a cryptocurrency agnostic platform, Armstrong stated that Coinbase Inc will support any cryptocurrency whether decentralized ones like Dai, or Stablecoin, or CBDC. However, they must first meet their listing standard. This response is a bit surprising though expected. The CBDC is a response to the weakness possessed by normal crypto assets.
CBDCs are fully regulated and the digital representation of the fiat currency of the country. Different from Bitcoin and other cryptos, it will be backed by monetary reserves, being gold or any foreign currency. The CBDC integrates the convenience and security of cryptocurrency, and the regulation and the reserved-backed money of the traditional system. Its operation is much different from cryptocurrency. It would need to be operated by the central bank of the country or any competent regulatory body. This is part of the surprise that comes with Coinbase’s decision to consider its listing.
The Bahamas has recently launched its Sand dollar with China expected to go public after finalizing its advanced test. The US on the other hand is exploring the possibilities to come out with its CBDC.
Coinbase’s Decision on the Security Token
Coinbase Inc is still in preparation to go public by early next month. During the ask-me-anything session, Coinbase was asked whether they have plans to ensure that Coinbase customers have special access to shares, airdrop shares, or even access to purchase shares on the platform.
In response, Alesia Haas, the CFO of Coinbase Inc said that there is no access for customers to invest in the company currently. A question about their exploration of the security token led to the discovery that Coinbase will not have that implementation, maybe not now. Haas stated that they have no infrastructure and have not enough opportunities for all investors. Also, the right license and foundation are other major problems in doing the security token.