What Are Cryptocurrency Debit Cards?
Cryptocurrency debit cards are not different from ordinary bankcards. Perhaps, the only difference is the cryptocurrency stored in them. Crypto debit cards are not such ancient development in the blockchain space either. They are relatively new, and they serve the purpose of using digital currencies to pay for daily expenditures. But we are yet in an environment where we can use bitcoin to pay for our errands like say, a grocery store. It would be an additional inconvenience, looking for a place to exchange crypto to fiat. Plastic cards are among the proposed methods for making crypto spending a more direct process.
Solutions To Crypto Spending
Currently, there are two solutions to crypto spending; the point of sale terminals and plastic cards. The former is hardware that requires installation at a merchant shop. To make a purchase, the hardware interacts with a wallet app on your phone and effects the transaction. A shortcoming with the PoS is that it requires the active interest of the merchant to accept payment in the form of digital currency. He is also required to fund the installation at his terminal. Thus, this approach is not feasible.
Plastic cards present a better option. The card takes advantage of the already existing infrastructure established by MasterCard and Visa, which is already available in terminals in shops worldwide. It wouldn’t require the merchant to do anything. They might not even be aware that you are using crypto because the conversion to fiat is seamless.
Types Of Cards Available
The mainly available cards are debit and prepaid cards. But by today’s standards, prepaid cards are a bit outdated. They require the provider an amount of crypto so they can send you a prepaid visa with an equal amount in fiat. It then works as a regular old debit card.
The debit card, on the other hand, is a more advanced development with automated exchange. You only need to deposit your crypto directly via a web app. When it comes to purchasing, the card provider does the converting to the necessary fiat on the spot. The merchant needs not knowing that he is handling a crypto debit card. In fact, from his point of view, the card is the same as the regular prepaid card. The only difference is that the owner deposited cryptocurrency.
Where And How To Get A Crypto Debit Card
There are several crypto debit card providers, most of whom are online. A simple online search will display numerous providers. You can henceforth order yourself a debit card by logging in their website. The technology, needless to say, is heavily regulated by governments, and it might require you to undergo identity verification to prove your identity. An ID will be enough as well as some upfront payment.
The Downsides Of Crypto Debit Cards
You might be asking yourself if they have been here for a while and are as good as the claims, why aren’t they as popular. Well, it would be only fair if we told you that it has to do with the confirmation time and transaction fee.
You see, bitcoin transactions have an average confirmation period of 10 minutes. In addition, the fee is also significantly higher than the regular debit card. The two factors, in combination, make it unsuitable, especially for small and everyday purchases.
Note that other cryptocurrencies, like Ethereum, have faster confirmation times and lower fees than bitcoin, while bitcoin triumphs in popularity. However, you can’t deny the fact that other altcoins are gaining popularity.
Can You Load Altcoins In Crypto Debit Cards?
You can. The option to load altcoins was only recently made available by the emergence of cards that allow the same.
TenX is one of the young projects that have taken to task, the availability of altcoin debit cards. The project is working on cards that can be loaded with Dash and Ethereum as well as bitcoin. The altcoins have a lower transaction fee and faster processing than bitcoin.
The COMIT technology that TenX uses enables the system to accept deposits in any tokens conforming to a few requirements like double spend protection and multi-signature wallets.
The emergence of such technologies enables paying at Big Mac and McDonald’s with cryptocurrency easier than ever before.
