You just ordered your favorite espresso at your local coffee shop and are ready to pay. Don’t you wish there was a way to pay for that coffee directly with crypto? Alas, that would require the tedious process of exchanging your crypto to fiat and collecting the cash before actually paying for it. At that point you’re not even paying with crypto anymore, but using fiat instead.
What if there was a way to directly deposit crypto and use it to pay for everyday expenses like your coffee? Cryptocurrency as a whole has seen immense growth in popularity over the last few years, but liquidity has always been one of the largest issues hindering its acceptance across the world. Welcome to the newest development in crypto implementation…crypto debit cards!
This is not financial investment advice.
This article will touch on key aspects of cryptocurrency liquidity through debit cards
Just like any other bank card you may own, crypto debit cards are tangible, plastic cards which you can use at certain places to pay for things like your morning coffee. Of course, these cards are a relatively recent development in the blockchain world and were invented to solve the problem of using digital coins for day-to-day expenses. Unfortunately, due to its recent emergence, you can’t just go to your nearest grocery store and pay for your groceries with Bitcoin…not yet at least!
There are a few variations of crypto debit cards available that you should be aware of. Some crypto debit cards hold your Bitcoin directly as BTC and convert it into fiat only at the time of transactions, while other cards convert it into equivalent fiat as soon as you deposit them.
On the other hand, there are also cards that are simply linked to your fiat accounts where you can switch between crypto or fiat as much as you like. Irrespective of how it works, your crypto debit card can be used for everyday purchases and payments.
Review: Crypto debit cards are extremely new and function to help crypto owners use their assets directly in everyday transactions.
Using a crypto debit card at this stage in its development might end up causing you more stress, given how rare it is to find businesses which accept cryptocurrency payments. Resultantly, using crypto debit cards to solve the problem of liquidity creates a new problem of finding places that you can use them at. What if you can’t find a place that accepts crypto payments and you’re stuck with a now seemingly useless plastic card? To circumnavigate this issue, two solutions have been proposed.
The first implication of using crypto debit cards is the implementation of point-of-sale terminals. This is an installable hardware used by business owners to interact with a customer’s crypto wallet and withdraw cryptocurrency to make the purchase. The only problem with this is that it requires active participation from business owners to install the terminals, which will end up costing them some money upfront. As such, it’s pretty unlikely that you’ll be able to use your crypto at just any random store given how new this phenomenon is coupled with general reluctance from most business owners.
The second and more reasonable implication is the adoption of “rechargeable” crypto debit cards that can be used under the existing Mastercard/Visa debit card infrastructure. What makes this a much better solution to the liquidity issue is that you can use these cards everywhere that accepts major credit cards. Additionally, business owners won’t even need to install any extra hardware or terminal to process these payments; in fact, the cashier won’t even know whether or not your paying with cryptocurrency! All you really need to do is deposit your cryptocurrency online and you’ll be good to go, as the card provider will handle the exchange to fiat at the time of transaction.
Review: Liquidity issues have always hindered the growth of cryptocurrency as a whole, but that’s where these debit cards come in. Using the current widely-used card infrastructure, business owners all around the world can accept crypto payments through these debit cards.
The implementation of crypto debit cards is being explored everyday by all kinds of companies seeking to solve the liquidity issue of crypto and bring digital assets to everyone. With an increasing number of companies providing crypto debit cards, there are tons of services to choose from. As always, the key to picking the best service lies in finding a balance between personal preference and objective reasoning. Do your own research and scour the website to find the card that is perfect for you.
Be aware of extra fees and transaction costs which some cards incur while others don’t. Are you a frequent crypto user and traveller? Consider using a company that doesn’t charge too much for international transactions. Or what if you’re new to crypto and don’t make frequent debit card transactions? Find a company that boasts a reliable reputation that you can trust.
Once you found the crypto debit card service that’s right for you, simply visit their website and follow the steps in order to get started.
Review: Finding the right crypto debit card starts with finding the right company. Each crypto debit card business will offer a slightly different set of pros and cons which will affect your decision. Do your own research and you’ll be ready to go.
Cryptocurrency has helped solve a myriad of problems associated with financial inclusion, leading up to the creation of crypto debit cards. Although they are currently not widely used, these unique debit cards are undoubtedly the next big step towards achieving global adoption by assisting crypto pioneers who want to use their digital assets for everyday expenses.