Coinbase Wallet now allows its users to take a backup of their wallet accounts on iCloud and Google Drive, according to an official announcement on February 12.
Coinbase believes that this will safeguard its wallet users against any loss or misplacement of private keys.
“The private keys generated and stored on your mobile device are the only way to access your funds on the blockchain. Owners of ‘user-controlled wallets’ like Coinbase Wallet sometimes lose their devices or fail to backup their 12-word recovery phrase in a safe place, thus losing their funds forever,” Coinbase noted.
7 Pharma Stocks from EuropeFX You Need to Know for a Covid-19 VaccineGo to article >>
Wallet users can store an encrypted copy of the recovery phrase in their cloud accounts. The system will encrypt the backup using AES-256-GCM encryption technique, and Coinbase assured that neither Coinbase nor the cloud platform would be able to decrypt the file without the password.
Coinbase also stated that in addition to iCloud and Google Drive, the company would eventually extend its support to other cloud platforms as well.
A Perfect Time to Introduce the Feature
The move by Coinbase comes at a time when there is chaos in the market for the loss of $190 million by the Canadian crypto exchange QuadrigaCX. The unexpected death of the CEO of the exchange locked all its funds as he did not create any backup for the private key restoration for the cold storage wallets.
Earlier this month, Coinbase added BTC support to its wallet app which was only limited to Ethereum and ERC-20 tokens. The exchange also added support for cross-border wire transfers for institutional clients in Asia, and Europe. In addition, the exchange integrated TurboTax on its platform to allow its customers to claim crypto trades on their taxes.