When it comes to making DeFi accessible to mainstream audiences, many have long searched for opportunities to spend cryptocurrencies like Bitcoin or Ether on physical goods and services.
One company – COINBASE – has been taking strides to make this a reality through the advent of Coinbase Commerce – an easy-to-use merchant solution to accept popular cryptocurrencies.
Coinbase Commerce currently supports a select few assets and up until today, only supported USDC in terms of stablecoins.
In today’s announcement, Maker shared that Coinbase Commerce will now be supporting Dai in tandem with USDC.
“Merchants around the world can now accept Dai as a payment for goods and services in minutes. Moreover, merchants do not pay a fee to use Coinbase Commerce, making onboarding free in addition to simple and secure.”
This news comes as a big surprise as many would have thought Coinbase would opt to only supporting USDC, thus driving any interest for stable payments to the Coinbase-native asset.
Why Does This Matter?
Beyond the premise of optionality for users to spend what many have come to call the defacto DeFi stablecoin, this partnership further allows merchants to see some of the immediate benefits to supporting DeFi assets.
Underneath the hood, Coinbase Commerce will provide onramps for merchants to leverage the Dai Savings Rate, effectively earning an attractive APR on all sales made through the solution.
| Date Changed | New DSR | Change (+/-) |
|---|---|---|
| Current | 7.5% | (-1.25%) |
| February 5th, 2020 | 8.75% | +1% |
| January 27th, 2020 | 7.75% | +1.75% |
| January 8th, 2020 | 6% | +2% |
| December 7, 2019 | 4% | (0) |
While we fully recognize that the number of users wishing to pay in Dai is extremely minimal, it’s a nice stepping stone towards the eventual adoption and evolution of cryptocurrencies becoming spendable in a traditional fashion.
What to Expect
Over the next few years, it’s likely that more merchants will recognize the benefit of being able to put their profits to use within the DeFi ecosystem.
While it’s largely focused on the DSR in today’s terms, there will certainly be other opportunities for merchants to access composability through solutions beyond Coinbase Commerce.
If one thing is for certain, the opportunities for merchants to accept cryptocurrencies in a reliable, stable currency are becoming more and more feasible by the day.
The more opportunities non-technical users can enjoy when accessing the tip of the DeFi iceberg, the more likely it is for them to explore even furher.
To stay up on all things Coinbase Commerce, please visit this resource.
Cooper is focused on building compelling blockchain products. He currently works as the managing director at Fitzner Blockchain Consulting and is a contributor to DAOs like MetaCartel and Moloch. He is an active member of the Ethereum community and has a strong interest in for-profit businesses such as The Block Crypto and Messari.
