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Coinbase Introduces 4.1% USDC Rewards for Canadians, Challenging Traditional Bank Rates

Canadians can now earn passive income easily as Coinbase launches a weekly 4.1% USDC rewards program.

This initiative allows users to earn rewards simply by holding USD Coin (USDC) without any lockups or restrictions.

Coinbase CEO Brian Armstrong emphasized that traditional checking accounts in Canada yield 0%, highlighting the need for better financial options.

For Coinbase One subscribers, the rewards rate is even higher at 4.5% on holdings up to $30,000.

The rewards are automatically accrued with no opt-in required, and users can withdraw or convert their holdings at any time.

Coinbase's program contrasts sharply with typical financial products in Canada that offer minimal yields.

A recent survey indicates that a significant majority of Canadians believe the financial system requires reform and that banks focus too much on profit.

USDC, the stablecoin at the heart of the rewards, is backed by cash and U.S. Treasuries, maintaining a 1:1 peg to the U.S. dollar.

While Coinbase clarifies that these rewards function as a loyalty program and not as a savings account, they intend to enhance the role of stablecoins in Canada’s financial landscape.

This move marks a significant step in integrating cryptocurrencies into everyday financial transactions and provides Canadians with an appealing alternative to traditional banking structures.