Continuing from our update on the recent Bitcoin hard fork, there have been some new developments regarding Bitcoin cash.
Innovation And Improvements
Forks enable innovation and improvements to digital currency and we believe that we will see an increasing number of forks in the future. We expect this to be a vibrant and innovative community.
A New Digital Asset
When a digital currency forks, it creates a new digital asset. Adding new digital assets to Coinbase must be approached with caution. Not every asset is immediately safe to add to Coinbase from a technical stability, security, or compliance point of view.
Safety Of Funds
The top priority of Coinbase is the safety of customer funds and they spend extensive time designing, building, testing and auditing their systems to ensure that the digital asset they support remains safe and secure.
Coinbase may not always be first in adding an asset, but when they do, you can be sure that they’ve invested significant time and care into supporting it securely. We believe this is the best approach for Coinbase to maintain customer trust.
In the case of Bitcoin cash, Coinbase made it clear to their customers that they did not feel they could safely support it on the day it was launched. For customers who wanted immediate access to their Bitcoin cash, Coinbase advised them to withdraw their Bitcoin from the Coinbase platform. However, there are several points that should be made clear:
- Both Bitcoin and Bitcoin cash remain safely stored on Coinbase.
- Customers with balances of Bitcoin at the time of the fork now have an equal quantity of Bitcoin cash stored by Coinbase.
- Coinbase operates by the general principle that their customers should benefit to the greatest extent possible from hard forks or other unexpected events.
Over the last several days, all of the relevant issues have been examined and it has been decided that work on adding support for Bitcoin cash for Coinbase customers is to be started.
This decision was made based on factors such as the security of the network, customer demand, trading volumes, and regulatory considerations.
Support For Bitcoin Cash
Coinbase are planning to have support for Bitcoin cash by the first of January 2018, assuming no additional risks emerge during that time.
Once supported, customers will be able to withdraw Bitcoin cash. Coinbase will make a determination at a later date about adding trading support. In the meantime, customer Bitcoin cash will remain safely stored on Coinbase.