In recent years, the thought of cryptocurrency being fully embraced by the financial world was highly regarded as a pie-in-the-sky fantasy. But despite being shut off by major credit card providers a few short years ago, crypto has consistently proven its resilience and potential as a huge player in the financial world. And its latest innovation? Physical credit cards that proudly front crypto transactions as their selling point.
In fact, Bloomberg Quint reports that credit card giant Visa has recently partnered up with a crypto startup called Fold, in order to provide their cardholders with Bitcoin rewards instead of airline miles or cash back promos. However, the companies that have really advanced the technology are still under the general public’s radar. Here, we’ll talk about everything you need to know about crypto credit cards.
Where are we in crypto credit card tech?
The Balance points out that huge credit card companies haven’t actually started transacting using crypto, but are rather taking baby steps towards crypto acceptance. For one, Mastercard has submitted a patent that lets their credit card transact using Bitcoin. Another step in the right direction has been taken by American Express, which has filed a patent for integrating blockchain in their payment system.
However, the real work for crypto credit cards has been put in by smaller companies like Crypto.com and TenX. The TenX card is a physical card that lets you spend your crypto cash like Ether, Litecoin, and Bitcoin in virtually any store that accepts credit cards. This is possible due to TenX’s partnership with Visa, which allows your crypto funds to be virtually converted into fiat money on the spot.
In more great news for crypto enthusiasts, the MSO Visa Card is also now in its final stages and will soon be ready for circulation. Introduced by Hong Kong-based cryptocurrency platform Crypto.com, the MSO Visa Card will offer crypto lending services to users, with rewards such as cash back, airport lounge privileges, and referral incentives.
Are crypto credit cards worth it?
The claim that crypto credit cards are inevitably the future of virtual payments is still up for debate. However, there are a lot of folks who are excited to make the jump to credit cryptocurrency. Besides the usual benefits of rewards, rebates, and ease of use, there are other ancillary benefits that make the case for cryptocurrency credit cards. One big feature that frequent flyers and shoppers might love is the ability of crypto credit cards to hold different currencies. This allows you to make a withdrawal or transaction in different countries without the usual fees that most banks charge — but with the safety and security of the blockchain.
But, crypto credit cards still carry the same caveats conventional credit cards do despite running on revolutionary tech. Case in point, Petal Card notes how owning too many cards at once can make it hard to track your spending, bills, and even your rewards or points, so remember not to bite off more than you can reasonably chew. Because crypto credit cards are still a relatively new — albeit exciting — development, it’s best to start off by researching extensively on which crypto credit card works for you the best, the risks surrounding it, and what it could possibly hold for you in the future. This way, you safeguard your financial capability without falling behind on the wonders that crypto credit cards may offer.
For more on all things crypto, be sure to check out our articles here on Coin Revolution.