- Cryptocurrency will now be available for everyday shopping thanks to Blockchain.com’s partnership.
- MasterCard, Visa’s key competitor, signed a deal with UAE-based cryptocurrency trading platform BitOasis in October.
- Customers will be able to shop and pay using their crypto at any merchant that accepts Visa debit cards worldwide.
One of the biggest cryptocurrency exchanges in the world has announced the launch of a crypto debit card in collaboration with Visa.
The Blockchain Visa-branded card will allow customers to spend their crypto or cash without incurring any fees, according to the press release. There will be no subscription or recurring fees associated with the platform. To encourage people to use the product, the newly launched product will also offer a 1% cryptocurrency cashback.
Cryptocurrency Spending Options
Initially, the product will only serve the US market, but it will expand globally from 2023. Visa’s head of cryptocurrency, Cuy Sheffield, said the company believes strongly in the adoption of cryptocurrency. Cryptocurrency will now be available for everyday shopping thanks to Blockchain.com’s partnership.
“There’s still a lot of demand for crypto products, but you’re seeing that demand shift away from trading and more towards folks that are interested in using DeFi, using their balances.”Blockchain.com CEO Peter Smith
Crypto exchanges like FTX, Binance, Coinbase, and BlockFi have previously partnered with payment giants to offer crypto-friendly debit cards. MasterCard, Visa’s key competitor, signed a deal with UAE-based cryptocurrency trading platform BitOasis in October to roll out a series of crypto card programs. As cashless payments continue to grow, leading cryptocurrency figures such as Binance, Coinbase, Crypto.com, and Blockchain.com are seizing the opportunity.
Startups and businesses quickly noticed the benefits of using crypto to attract new clients. Rather than offering travel benefits or money on purchases, many card issuers offer cryptocurrency incentives. Globally, Crypto.com launched more than 100,000 bitcoin Visa debit cards in 2018.
Problems With Cards
The availability of crypto debit cards and taxation are two major issues. There are many card issuers that limit services based on geography, such as Binance debit cards, which are only available in Europe. Accessibility is a major problem, especially for people who live outside the support zone.
Also the challenges associated with cryptocurrency taxes may be familiar to Americans. Since the IRS views debit cards as property rather than money, debit card users must pay taxes on their purchases.
CEO Peter Smith said there are currently 50,000 customers joining the waiting list for debit cards and with shifting from trading to payments we can expect the number to increase.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.