Update for customers with Bitcoin Stored On Coinbase

We wanted to provide an update on proposed changes to the Bitcoin network and what that means for Bitcoin stored on Coinbase. You can read more about what a digital currency fork is here.

Customer Safety

Coinbase’s first priority is the safety of customer funds. In the event of a fork, customer fiat currency (USD, EUR and GBP) and digital currencies (Bitcoin, Ether and Litecoin) are safe.

Changes To Bitcoin Software

On the first of August 2017 there is a proposal to make changes to the Bitcoin software. This proposal, known as Bitcoin Cash, is likely to create a fork in the Bitcoin network. This means that after the first of August 2017 there are likely to be two versions of the Bitcoin blockchain and two separate digital currencies.

Bitcoin Cash Fork

In the event of two separate blockchains after first of August 2017, Coinbase will only support one version. They have no plans to support the Bitcoin Cash fork. Coinbase have made this decision because it is hard to predict how long the alternative version of Bitcoin will survive and if Bitcoin Cash will have future market value.

Two Separate Currencies

This means that if there are two separate digital currencies – Bitcoin (BTC) and Bitcoin cash (BCC) – customers with Bitcoin stored on Coinbase will only have access to the current version of Bitcoin they support (BTC). Customers will not have access to, or be able to withdraw, Bitcoin cash (BCC).

Customers who wish to access both Bitcoin (BTC) and Bitcoin cash (BCC) need to withdraw Bitcoin stored on Coinbase before 11.59 pm PT 31st of July 2017. If customers do not wish to access Bitcoin cash (BCC) then no action is required.

Temporary Disruption

Coinbase plan to temporarily suspend Bitcoin buy/sells, deposits and withdrawals on the first of August 2017 as the fork is likely to cause disruption to the Bitcoin network. This means that customers’ funds will be safe but they will be unable to access their Bitcoin (BTC) for a short period of time.

We will keep you updated on this event via our Facebook, and Twitter.