Coinbase Announced New Feature
Bitcoin startup Coinbase this week announced a new feature called Instant Exchange that allows users to send or receive bitcoin payments while eliminating exposure to bitcoin exchange rate fluctuation. Now anyone can automatically convert received bitcoin into their local currency.
Users can send bitcoin and instantly purchase their local currency in the same transaction event. Users that opt into the "Instant Exchange" feature can receive bitcoin that will instantly convert into the user's local currency. This allows the use of bitcoin more as a payment mechanism between currencies, and allows customers to use bitcoin on Coinbase without exposure to bitcoin's volatility.
Coinbase supports the new feature for users with USD, EUR, and GBP wallets.
Bitpay Shifts Model to Large Banks
Bitpay recently announced the company's shift away from payments and merchant platforms to working with large banking and financial institutions. Bitpay intends to utilize their own accounting infrastructure used to secure internal payment processing and offer an implementation to financial organization clients.
In addition to onboarding major companies like Microsoft and TigerDirect to accept bitcoin as payment, Bitpay has developed some innovative Bitcoin products. Bitcore, an open source development platform that includes libraries to interface with the blockchain, and Copay, a multi-sig wallet, have been two of their technology product successes. Bitpay also produced a whitepaper for ChainDB, a P2P database of sorts that could hash and secure data into the blockchain.
If banks are already moving to adopting Bitcoin for inter-bank settlement and payments, then servicing the technical implementation of the blockchain could be a strong business model for Bitpay.