Coinbase announced that users can now link their online Coinbase.com account to their Coinbase wallet app, ensuring easy transfer of cryptocurrency from the former to the latter. The San Francisco-based exchange behemoth announced the news via a blog post on March 12, 2019.
The company plans to roll out an update to its wallet app which will allow users to create an interface between their wallet app and their online Coinbase.com accounts.
The company says the interface is part of its plans to provide its customers with robust cryptocurrency storage options, as well as encourage the use of decentralized apps (dApps).
An excerpt from the blog post that elaborates on the importance of the new update reads as follows:
“For Coinbase users that frequently transfer money between their Coinbase.com account and a software or hardware wallet, we believe this new feature will give them the ‘easiest to use’ experience that is a hallmark of all Coinbase products.”
As the transfer process to the wallet app becomes easier, Coinbase says it hopes more people will begin to interact with dApps and open finance apps. The company also says future ventures will allow users to transfer funds from the app back to their online account.
“Your Keys, Your Cryptocurrency”
Unlike the Coinbase.com account, wallet app users have possession of both their cryptocurrencies and private keys. Many critics of online wallets have declared them to be the least safe of all storage options.
The Bitcoin Knowledge podcast host, Trace Mayer, is one of the many advocates of personal ownership of private keys. Back in January 2019, he encouraged the cryptocurrency community to participate in the Proof of Keys celebration by withdrawing their virtual currencies held by third-party services.
This latest step by Coinbase can potentially go a long way in encouraging users to hold their valuable cryptocurrencies in wallets that they control. The Coinbase wallet app offers support for all ERC20 and ERC721 tokens, as well as, major cryptocurrencies like bitcoin, bitcoin cash, and litecoin.
Pushing for Positive Public Perception
Coinbase has come under intense scrutiny over its acquisition of Neutrino. Critics took issue with the revelation that some employees of Neutrino had ties to state-sponsored spyware projects across the globe leading to the #DeleteCoinbase movement on Twitter.
This latest move that allows users to transfer their cryptocurrencies to more secure wallet apps might help to repair some of the damage caused by the negative press surrounding the company.
Meanwhile, Coinbase has tried to paper over the cracks saying that it will lay off Neutrino employees with a history of participating in the development of spyware programs.