TLDR
- Coinbase’s new Amex card offers up to 4% cashback in Bitcoin to users.
- The card’s design features Bitcoin’s Genesis Block, linking to Bitcoin’s origins.
- Available exclusively for Coinbase One subscribers, no foreign transaction fees.
- Bitcoin rewards earned won’t appear on 1099 tax forms unless sold later.
Coinbase is set to launch a new American Express credit card this fall, designed specifically for cryptocurrency enthusiasts. This new card aims to provide users with up to 4% bitcoin cashback on purchases. What makes this product stand out is not just its rewards program, but also its design, which incorporates elements from Bitcoin’s origin story. Here’s everything you need to know about the upcoming Coinbase Amex card.
Unique Design Inspired by Bitcoin’s Genesis Block
Coinbase’s new American Express card is distinct in its design, which directly connects to Bitcoin’s beginnings. The card will feature hexadecimal code from the Genesis Block, the first block ever mined on the Bitcoin network. This block, created by Bitcoin’s pseudonymous founder Satoshi Nakamoto in 2009, symbolizes the start of the Bitcoin blockchain.
The inclusion of this data serves as more than just a design feature; it ties the product to the fundamental ideals of Bitcoin. Embedded in the Genesis Block is a message from a 2008 newspaper headline that reads, “Chancellor on brink of second bailout for banks.” This message critiques the traditional banking system, highlighting the decentralized nature of Bitcoin.
Coinbase One Membership Requirement
To access the new American Express card, users must be subscribed to Coinbase One, a paid membership program. This exclusivity aligns with Coinbase’s approach to offer a premium experience for its loyal users. Subscribers will earn up to 4% cashback in bitcoin, a reward structure based on the assets held within their Coinbase accounts.
Unlike many standard credit cards, the Coinbase One Amex card will not charge foreign transaction fees. Users will have the flexibility to repay their balances either through a linked bank account or using crypto assets stored on the Coinbase platform. Additionally, users will benefit from the perks offered by American Express, such as access to exclusive offers and events.
Tax Considerations and Rewards Structure
Coinbase has clarified how the cashback rewards will be treated from a tax perspective. According to the company, bitcoin rewards earned through the card will not be listed on the standard 1099 tax forms. However, if the bitcoin rewards are later sold, taxes may apply based on the current value of the cryptocurrency.
The card’s cashback rate scales according to the amount of assets users hold on the Coinbase platform. This means that users with larger crypto holdings may receive higher rewards, creating an incentive for users to engage more deeply with the platform.
Competition from Other Crypto Cashback Cards
While Coinbase’s new Amex card brings a unique focus on Bitcoin’s founding, it is not the first crypto rewards card on the market. Gemini, for example, launched its own crypto rewards card in 2023. Gemini’s card offers up to 3% cashback on purchases and supports a variety of cryptocurrencies beyond Bitcoin, including Ether and stablecoins.
What sets Coinbase apart is its emphasis on Bitcoin as a philosophy, rather than simply a rewards tool. While competitors like Gemini focus on providing flexibility with multiple crypto options, Coinbase’s card appeals more to users who see themselves as part of Bitcoin’s broader mission of decentralization and financial independence.
With the new card, Coinbase is looking to attract users who align with Bitcoin’s values and seek a deeper connection to the cryptocurrency. Whether this focus on ideology will be enough to differentiate Coinbase’s offering in a competitive market remains to be seen, but the card’s design and rewards structure aim to position it as a significant product for Bitcoin enthusiasts.
