The world of cryptocurrencies has moved on far beyond just ideas and use cases and has evolved into a thriving industry. What started just as a peer-to-peer payments system, now boasts an array of financial services that one would have access to in the traditional banking system. As such, one of the significant developments in this regard was the introduction of cryptocurrency debit cards.
Crypto debit cards are a bridge between the old and the new and it allows cryptocurrencies to be exchanged instantly for fiat that can then be spent anywhere around the globe. There are a variety of options available on the market right now with some famous names like Coinbase and BitPay. The latest to launch its crypto debit card was popular crypto exchange Binance.
More Crypto – debit cards issued
On March 26, Binance announced the official launch of its crypto debit card that allows the cardholders to pay with Crypto using a fiat gateway. It has been issued with Visa and is accepted by more than 46 million merchants globally. The card is connected to the users Binance account, and hence the entire process is much faster than having a bank involved.
“The Binance Card does everything a regular payment card does, plus much more. It works like a regular debit card issued by your bank – which, in this case, is your Binance.com account.”
The card also comes with its very own mobile application that can be topped up with Bitcoin or BNB by transferring the funds from a wallet. A one time fee of $15 is required to activate the card, and the card would then use this balance for payments. There are no additional monthly or yearly fees.
Binance is just one among many issuers, and it is quite evident that the trend of the crypto-based debit card is on the rise. Last year, Coinbase made the headlines as it introduced the first ever debit card with Visa in the UK/EU that allowed spending of one’s crypto balance directly from the exchange. Since then, it has become a principal member of Visa, making it the first crypto company that can now launch its cards.
Why use Crypto?
Crypto debit cards are the next step towards making the entire process of spending one’s money hassle-free. The fact that there are no banks involved makes the process instant and way cheaper than those provided by banks. What makes the transactions even easier is the fact that the companies issuing crypto-backed cards are collaborating with globally recognized payment processors, such as Visa, MasterCard and UnionPay.
Furthermore, card issuers are also linking more than one fiat currency, and users can often choose the base currency they want. Since cryptocurrencies are almost borderless and not restricted to a particular government, crypto debit cards also serve as a convenient tool for travellers due to their easy conversion to different major currencies. There is also the added advantage of blockchain technology’s anonymity and security.
These new additions in the crypto space are expected to boost mainstream adoption of cryptocurrencies, as it helps draw in mainstream consumers due to its similarity to traditional payment methods. Since the world of Crypto and blockchain is continually gaining popularity, it is understandable that people want to start using their digital assets to purchase goods.