Coinbase is preparing to offer BTC cashback with Amex card.

Coinbase's New Amex Card: Bitcoin-Focused Design

Coinbase is preparing to launch a new American Express credit card this fall in the U.S. This card will offer its most loyal users up to 4% Bitcoin cashback on their purchases.

The card's design is crafted with data from Bitcoin's Genesis Block, directly appealing to Bitcoin enthusiasts by referencing the "coinbase" transaction. The competition it will face includes existing crypto reward cards, such as Gemini's card.

Design Based on the Origin Story of Bitcoin

Coinbase's new product will not only provide benefits; it will also carry symbolism. The card houses data from the Genesis Block, the first block of the Bitcoin network, created by Satoshi Nakamoto on January 3, 2009. This single block marks the beginning of the Bitcoin blockchain and symbolizes the birth of an entirely new financial system.

The hexadecimal code featured on the card constitutes a part of the digital language in which Bitcoin's original history is written. This design choice directly references Bitcoin's foundational moment. A current message engraved on the card is taken from the headline of a Times newspaper published on that day: "Chancellor on the brink of second bailout for banks."

Card Features and Market Positioning

This card will be offered exclusively to users of the Coinbase One application, allowing them to earn up to 4% Bitcoin cashback. Rewards will increase based on the assets held by users on Coinbase. The card will not charge transaction fees abroad, but it will be redeemable with a linked bank account or the crypto on the platform.

Cardholders will also have access to standard American Express benefits. Coinbase states that Bitcoin rewards earned through spending will not appear on 1099 tax forms, but taxes may apply if these rewards are sold later.

Crypto reward cards are not new; for instance, Gemini launched a credit card in 2023 offering up to 3% crypto cashback. However, Gemini positions its product as a practical spending tool for earning crypto rewards. On the other hand, Coinbase presents the Amex card in a more symbolic manner. This distinction may be significant for users: existing cards may be more appealing for those wanting exposure to a variety of crypto assets. However, for those who see themselves as part of Bitcoin, Coinbase believes that ideology and identity can be as attractive as cashback rates.