Coinbase CEO Brian Armstrong said his company’s most ambitious vision is to replace traditional banks by transforming Coinbase into a full-service crypto “super app.”
During a recent interview with Fox Business, Armstrong confirmed the company’s plans to offer a range of financial services powered by Crypto Rails, from payments to credit cards and rewards.
“Yes, we want to be a super app and provide all sorts of financial services,” Armstrong said. “We want to be people’s main financial accounts and I think Crypto has the right to do that.”
Armstrong criticizes the current banking system as outdated and inefficient, pointing out high transaction fees as one of the main issues. “It’s something that stirs my mind. Why do I pay 2-3% each time I swipe my credit card?” he asked. “It’s just a small portion of the data flowing over the Internet. It should be free or nearby.”
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Coinbase Eyes 4% Bitcoin Reward Card
Coinbase CEO said the long-term goal is to provide better services across the board, including credit cards with a 4% Bitcoin (BTC) reward. “In the end, we want to be a bank alternative for people,” he said.
The push for super apps comes amid growing clarity in the US. Armstrong praised recent legislative victories such as the Senate’s Genius Act and the Senate’s broader market structural law advancements, noting that “freight trains have left the station” on the clarity of regulations.
“We are partnering with banks such as JPMorgan and PNC,” Armstrong said.
Related: Coinbase file legal moves via Gensler, text messages missing SEC
Coinbase taps Defi to increase your USDC yield
As reported by Cointelegraph, Coinbase integrated the distributed lending protocol MORPHO into its app, allowing users to lend USDC (USDC) directly without the need for a third-party Defi platform. This move will potentially earn users a 10.8% higher yield.
The development comes amidst the tensions surrounding the stable rocks responsible for surrender, which was banned under the act of genius. Banking support groups such as the Institute for Banking Policy are calling for regulators to close perceived loopholes that allow yields through third-party integration.
Coinbase dismissed these criticisms, saying that Stablecoins are not a threat to lending, but rather a modern alternative to the outdated bank revenue model.
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