As of yesterday, users using a Coinbase Wallet can now back up an encrypted version of their private keys to their personal cloud storage account. These accounts include either iCloud or Google Drive. Coinbase released this announcement via its personal blog yesterday.

Coinbase Wallet Upgrades

🔐☁️ Introducing Cloud Backup for your private keys on Coinbase Wallet!
Backup to your personal iCloud or Google Drive, and explore the open financial system with peace of mind. https://t.co/6uaHT8AZky
— Coinbase Wallet (@CoinbaseWallet) February 12, 2019

This new feature is making many within the cryptocurrency community scratch their heads. Coinbase states that the Coinbase Wallet cloud back-up feature is completely optional. The company also explained that the backup is encrypted using a user-provided password with AES-256-CCM encryption. Coinbase claims that this backup is accessible on the Coinbase Wallet.

Coinbase explains their reasoning behind this latest feature:

“Owners of ‘user-controlled wallets’ like Coinbase Wallet sometimes lose their devices or fail to backup their 12 word recovery phrase in a safe place, thus losing their funds forever. Now, with cloud backup, we give you the ability to store an encrypted copy of your recovery phrase on your personal cloud account. You will only have to remember a password, that you decide, in order to recover your funds.”

Coinbase Wallet Backlash

Not everyone seems thrilled about the latest feature, though.

i’ve always wanted to store my private keys on servers in china. where do i sign up!
— James (@chasing_ducats) February 12, 2019

Other crypto investors said:

incredibly dishonest.
— PonderJaunt (@PonderJaunt) February 13, 2019

Given the number of hacks that have occurred with hot wallets since cryptocurrency hit mainstream news in 2017, I don’t blame their hesitation. Coinbase Wallet plans on supporting other clouds in the future.