- Coinbase CEO Brian Armstrong said the exchange had been informally pressured by the RBI to withdraw its UPI option in India
- Armstrong takes an even more optimistic stance, notwithstanding Coinbase’s reported first-quarter net loss of $430 million
Last month, Coinbase rolled out UPI payments for Indian crypto users, but before the product could even launch, it was withdrawn as an option as the crypto exchange didn’t give users an explanation for the rollback. UPI is a widespread payment infrastructure built by a network of banks.
The decision to withdraw the offer followed a warning from the National Payments Corporation of India (NPCI), which administers the UPI. The organization denied knowledge of it “any crypto exchange” with UPI payments.
Informal pressure from the RBI
Regarding the UPI drama, Coinbase CEO Brian Armstrong offered an explanation in an earnings call on Tuesday, saying the exchange saw it “Informal pressure from the Reserve Bank of India, which is something of a Treasury equivalent there.“
He added that the crypto exchange has agreed to work with RBI to find a solution that would allow it to set up additional payment options.
A $430 million loss, but Armstrong is still optimistic
Nonetheless, Coinbase released its earnings report on Tuesday, revealing a net loss of $430 million in the first quarter, down on $1.17 billion in revenue. That represented a plunge of about 27% from first-quarter 2021 numbers. First-quarter revenue was also less than half of last year’s fourth-quarter revenue of $2.5 billion.
In addition, the number of monthly active users reached 11.4 million, down 19% from the previous quarter’s figures. This is contributing to the current bearish environment, but Coinbase’s CEO insists he remains unfazed.
Armstrong justified his belief with earnings during the earnings call, telling investors that bearish streaks are typically very productive for Coinbase, which is why he’s never been more bullish on the company.
“There are so many customers making their way to our door that we have to have all hands on deck to keep everything going. So sometimes the downtime is a welcome change in the sense that we can focus on building the next layer of innovation that will benefit us in the next cycle.”
Citing a prospectus shared by the exchange last year, the Coinbase executive also insisted the company’s ambition to continue crypto adoption amid market volatility.
Source: Crypto News Deutsch