Coinbase re-enables the Faster Payments Service
Coinbase re-enables the Faster Payments Service

Coinbase re-enables the Faster Payments Service

By Matteo Gatti - 4 Oct 2019

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Coinbase, after breaking up with Barclays, is ready to re-enable fast payments via the Faster Payments Service (FPS) for UK residents. This allows customers to make instant deposits and withdrawals. The service considerably speeds up the purchase of digital coins with pounds sterling.

Coinbase together with ClearBank

During the month of August, the cryptocurrency exchange Coinbase announced the termination of its relationship with Barclays and a new partnership with ClearBank. The closure of the Barclays partnership was a setback for the exchange because it led to several disruptions and the suspension of the FPS. The inability to use the Faster Payments Service has resulted in enormous delays in processing deposits and withdrawals in recent months.

ClearBank supports four different payment systems, including Faster Payments which allows instant transactions of up to £250,000 per person. Zeeshan Feroz, CEO of Coinbase UK, confirmed the news reported by Bloomberg. Feroz confirmed that the service will soon be re-enabled, allowing deposits and withdrawals to be processed swiftly, within 60 seconds of the request.

“It’s a very nascent industry that is broadly unregulated […]. Understanding the crypto space and how you manage the risk requires a significant amount of investment and resources. As we look at the long term, that gap between crypto and traditional banks will be bridged”.

Barclays against cryptocurrencies?

The reason for the termination of the relationship with Barclays has not been revealed but it seems clear that it was Barclays who wanted to end the partnership, leaving Coinbase disoriented. Other clues suggest that the bank is not in favour of cryptocurrencies.

During the Blockchain Live event held on September 25th in London, Anthony Macey, Director of Emerging Technologies for Barclays, took the floor. His speech did not seem very friendly towards blockchain and crypto. Macey said that they are used mainly for illegal transactions and that not everyone is able to manage their money without the help of an intermediary like a bank.

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