The Visa Debit Card for cryptocurrency is being launched by the Hong Kong based cryptocurrency startup.
The crypto debit card services will be backed by crypto money lending. Both of these services would be offered in compliance with existing regulations.
To start off about 100,000 debit cards would be issued for the Singapore region in the next two months. The startup has applied for the respective licenses for the same. They are also applying for money lending licenses in Singapore and Hong Kong.
The co-founder of the company stated, CEO, Kris Marszalek “To holders of crypto currencies, having the peace of mind that you can readily convert back into fiat currencies and cash out is very important. Not all exchanges support crypto-to-fiat transactions, and even if you hold your digital assets at the exchanges’ wallet, the withdrawal process is also complicated. We believe our product addresses a real need, and enhances trust in digital assets”
The interesting thing about the lending is that customers will be able to borrow up to 40 to 60% of the value of their crypto currencies in stock. However, the crypto currencies should be pledged in collateral.
The KYC procedures are mandatory; however, there is no need for checking the credit history of the investor in order to apply for the debit card.
The firm aims at being disruptive of the credit card industry. Marszalek remarked, “The credit card business model is one that is bordering on unethical business, as banks make a big chunk of profit from people who cannot afford late fees. These people should not be given a credit card in the first place.”
The tokens of the firm are being traded in around 21 exchanges. The firm raised about $26.7 million in Initial Coin Offerings.
This debit card will be linked to crypto wallets and also to fiat currencies. The Crypto wallets with which the token will be currently linked to are those that support BTC, ETH, LTC, MCO and BNB. About 7 currencies will be linked to this token. The chief among the fiat currencies linked to the token are USD, Singapore dollars and Hong Kong dollars.
The concept of being able to convert crypto currency in to dollars is a break through that will serve customers by allowing them to pay for their routine bills at brick and motor outlets, online e-commerce sites and also to retailers.
There is an increasing trend where crypto currency companies are increasingly issuing debit cards to help their investors to be able to use the crypto for their day to day needs.
The ability to convert crypto to fiat currency is indeed a breakthrough that will increase investor confidence on the currency. The crypto company takes over the process of converting the crypto to fiat currency. This method also circumvents the unwieldy steps that will be required to convert the crypto to fiat for the customers. Spending with crypto thus becomes easier for customers.
Cryptopay, Wirex, Wagecan are a few to name debit card platforms for crypto currencies.
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