Coinbase’s New USDC Fee Structure Raises Concerns Over Centralization and User Trust

Key Points

1. Coinbase will charge a 0.10% fee on net USDC-to-USD conversions over $5 million within a 30-day rolling period, with the first $5 million remaining fee-free.

2. Critics argue the fee structure resembles traditional banking practices, contradicting crypto's decentralized ethos, with users expressing frustration over the change.

3. Coinbase describes the fee as an experiment to study the impact of fees on USDC off-ramping and claims to monitor feedback to improve stablecoin usability.

4. The fee change follows previous complaints about account restrictions and frozen withdrawals, with Coinbase reporting an 82% reduction in such issues but facing lingering trust concerns.

5. Some users and analysts worry the fee could signal a shift toward centralized control, despite Coinbase's assurances of maintaining competitive and user-friendly services.