Although the popularity and acceptance of cryptocurrencies are increasing rapidly, there is a big gulf in terms of acceptance while connecting them to day-to-day transactions. So, innovative cryptocurrencies like Bitcoin and Ethereum are far from making their ways into common use cases as modes of payment accepted by merchants and service providers, hence reducing their practical usability and creating an obstacle for mainstream adoption.
Not to mention, converting these cryptocurrencies to fiat money for everyday use is resource-intensive, with too many steps involved, usually putting a heavy dent in fees and time delay.
The crypto debit card has been a promising platform in connecting the crypto world to traditional financial systems. Similar to regular debit cards, they are attached to the user’s cryptocurrency wallet instead of a bank account. They give their holders a chance to spend digital assets easily in the same style as using the fiat currency while performing online and point-of-sale operations. In most cases, crypto debit cards piggyback off legacy payment rails like Visa and MasterCard, making them very widely accepted.
Crypto debit cards solve exactly this usability and accessibility problem with the use of cryptocurrencies. They allow for real-time conversions of digital assets into fiat at the point of sale, immensely facilitating the process of spending cryptocurrencies in day-to-day transactions. This is done through the card provider, who exchanges the digital asset into the preferred currency of the merchant.
Their integration into conventional financial systems has various advantages. First of all, they rid users of the need to exchange cryptocurrencies into fiat money manually, hence saving time and reducing transaction costs. This ease of use increases the chances of more widespread adoption of cryptocurrencies for everyday use.
The second reason is the versatility crypto debit cards give to a user in the management of different asset types within one card. Many providers support various cryptocurrencies, thus allowing users to decide which assets they want to spend or hold. This might be handy in volatile markets where users want to spend certain assets while at the same time holding others as long-term investments.
Another advantage of crypto debit cards is the increased security level. Advanced security features, such as two-factor authentication and chip-and-PIN technology, protect funds and the assurance that their use can provide to users. Some crypto debit card providers also offer cashback rewards, as well as other incentives, thereby enhancing value for users.
In summary, crypto debit cards make it quite easier to use digital currencies in everyday activities. By linking crypto assets to traditional payment networks, they increase the practicality and convenience of spending in cryptocurrency, thus fostering greater adoption and integration into the global financial system.
Over the past two years, the popularity of cryptocurrencies has shot through the roof to all-time highs, capturing the interest of both investors and ordinary users. Spending cryptocurrencies for everyday purchases, however, remains difficult. Crypto debit cards have offered centralized exchange users an answer, but they do it at the cost of giving away control of your coins. This article presents self-custodial crypto card options letting one retain the keys while making purchases in the real world.
Gnosis Pay
The Gnosis Pay card is the first solution to use your crypto assets to buy things at Visa-supported merchants. This card is linked directly to your SAFE wallet, non-custodial, and gives one direct access to one’s funds. It currently supports the Monerium’s EURe, the stablecoin pegged to the Euro. Gnosis sees its functions broadening with some other assets in the near future, like an integration with MakerDAO’s DAI. It will only be available in Europe, and the card itself will cost about EUR 30. Available shortly in the United States and other countries.
ThorWallet Visa Card
Next on the list comes the ThorWallet Visa card, which already includes a free Swiss bank account. This virtual card supports Google Pay and Apple Pay. The associated bank account can be topped up directly with USDC through the ThorWallet mobile app, a non-custodial wallet already integrated into Thorchain’s ecosystem. It is available in 30 countries, not including the U.S. or the U.K., and comes in three tiers, differentiated by the number of THORwallet DEX tokens staked. There’s also an element of rewards for users through something it calls its ‘monthly cashback pool’, depending on one’s particular card tier and overall community spend volume.
HolyHeld
The HolyHeld Mastercard is yet another noncustodial debit card that you top up with the assets from wallets like Metamask, Coinbase, or Trust Wallet. It’s also possible to use the HolyHeld app for engaging with supported DeFi protocols other than just making a payment. It includes insurance for on-chain transactions up to $50,000. HolyHeld offers a few types of cards: the Classic Virtual one at 29 EUR, the Limited Edition for 99 EUR, and the metal one for 199 EUR. All users with a Classic and Limited Edition card get 0.5% cashback, while Metal cardholders receive 1% cashback in USDC. This card is available for residents in 30 countries across Europe.
SORA Card
With the SORA card, you’ll be able to retain full ownership of your crypto assets via the SORA non-custodial wallet. You will perform transactions using the native token, XOR. Currently, it’s available to users in a number of countries. However, it’s not available to people living in certain jurisdictions like China, Korea, and the U.S. A EUR 20 KYC fee has been embedded in the SORA card application, unless you have more than EUR 100 worth of XOR, in which case the card will be absolutely free. It has both physical and digital cards, adding Apple Pay and Google Pay compatibility on the roadmap.
Fina Card
Another one recently launched is the Fina Card, which currently serves EU residents, looking to expand in the U.S., Japan, and other jurisdictions. The different tiers are based on the amount of FINA, their native token, that is staked.
Suberra Card
How it works: The Suberra Card mandates that a user holds stablecoins, which are then debited on-chain at the time of any payment. In the case that the balance of stablecoins runs low, an auto-convert feature swaps tokens like ETH into stablecoins for spending. Although it was announced last April with its launch date slated for the second half of 2023, this does not appear to have gone live.
