Coinbase has announced that its USD wallet service is now available in another seven states: Alabama, Iowa, Kansas, Mississippi, New Hampshire, New York and North Dakota. The service is now supported in 22 states plus Puerto Rico, and there are plans to expand further.
Customers need to have their identity verified to use the service, which is intended to allow users to instantly buy bitcoin straight from their USD wallet balance, instead of having to wait for a bank transfer to clear. Previously, the only other method of instant purchase was through credit card, for which Coinbase charges a fee.
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It is possible that the feature will pay bigger dividends as part of a larger future strategy for payments. Namely, the company has 1.9 million users, according to published stats. While these users joined for Bitcoin purposes, the new feature may soon allow them to make instant, no-fee dollar transfers amongst each other. For Coinbase, this is simply an internal accounting exercise–just like inter-user bitcoin transfers. They have already overcome the onerous hurdle of becoming licensed as money transmitters in multiple states.