Coinbase Set To Allow Users To Withdraw Funds From Bitcoin Forks

Ali Raza
  • Cryptocurrency exchange and wallet provider Coinbase is reportedly going to allow users to withdraw funds from various bitocin forks
  • The company noted allowing withdrals doesn't necessarily mean trading support is coming.

A new statement published by popular cryptocurrency wallet provider Coinbase on its official blog reveals the company is set to start supporting the withdrawal of different bitcoin forks in the coming months.


Different Bitcoin Forks

Recently, a large number of new Bitcoin Forks have appeared for various reasons, the most popular ones being Bitcoin Cash (BCH), Bitcoin Diamond (BCD), and Bitcoin Gold (BTG). In its official announcement, Coinbase stated that it is not providing support for any specific asset yet.

There are a lot of factors to consider before making such a decision. The company assured its users that it won't hide its choice once its made, as Coinbase’s website is set to provide information on any assets it decides to support.

Notably the company dealt with a few problems when it launched Bitcoin Cash support. Various investors believed the cryptocurrency’s rollout involved insider information that was used for insider trading. According to them, this information gave company's employees a major advantage over everyone else. With this in their past, it is not surprising that Coinbase wants everything to be transparent and in accordance with their protocol.

Withdrawal Convenience

Withdrawing Bitcoin forks is set to become a lot more convenient once the company decides which ones it will be supporting. This as the company’s subsidiaries are also set to support projects deemed worthy.

A large corporation like Coinbase has quite a few subsidiaries. Among them: Coinbase Custody, GDAX, Coinbase Index Fund, and Coinbase Commerce. Many of these are already creating plans for developing and upgrading infrastructure that will follow Coinbase’s example. Providing support for Bitcoin forks will not be an easy task. The company reminded the crypto community that adding support for these tokens’ withdrawals does not mean that they are supporting trading for said asset.

The rapid creation of cryptocurrencies “airdropped” from hard forks is believed to have brought the crypto ecosystem a few problems. These problems involve potential brand confusion, as newcomers may not be able to understand why various cryptocurrencies are named “bitcoin”.

China’s Central Bank to Test Its Digital Currency With Commercial Banks, Telecom Firms: Repot

Francisco Memoria

The People’s Bank of China (PBoC), China’s central bank, is reportedly looking to test its digital currency, dubbed digital currency electronic payment (DCEP), later this year with the help of commercial banks and telecommunications firms.

According to a report published by Chinese financial news source Caijing, the central bank is set to test the digital yuan in the cities of Shenzhen and Suzhou with the help of its “big four,” which are the Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Industrial and Commercial Bank of China.

The digital currency’s tests will also see three telecommunications firms – China Telecom, China Mobile, and China Unicom – cooperate. During the test the DCEP is set to be applied in real-world scenarios such as transportation, healthcare, and education.

There will be two pilot phases, with the first one set to take place before the end of this year on a small scale. The second one is reportedly going to be a large-scale effort in Shenzhen, and if it goes well the DCEP could go live soon after.

The People’s Bank of China is believed to have been hastening efforts to develop its digital currency partly because of the Facebook-led Libra cryptocurrency’s announcement. Libra is set to be backed by a basket of currencies and short-term U.S. Treasury bonds

As CryptoGlobe covered the digital currency will, according to a PBoC official, provide its users with “controlled anonymity.” Chinese officials have also made it clear the currency’s holders won’t receive interest payments.

Featured image via Pixabay.