Until recently, cryptocurrency debit cards appeared to fall short of expectations. Despite many failed efforts in recent years, crypto debit cards are enjoying a second wind thanks to a surge in crypto prices over the summer. With some of the crypto world’s biggest names launching crypto debit cards, Cointelegraph takes a look at the latest updates in the burgeoning payments sector.
What are cryptocurrency debit cards and how do they work?
Cryptocurrency debit cards are almost exactly the same as the bank card you carry around every day in your wallet, except for the fact that you can use them to deposit and convert cryptocurrencies. Crypto debit cards represent the transitional stage that cryptocurrencies are currently evolving through. Merchants — for the most part — aren’t ready to accept payments for everyday items and services in crypto, along with the fact that many cryptocurrencies still face issues with transaction time. Consequently, many exchanges only offer the possibility to trade cryptocurrencies for other existing cryptocurrencies, presenting an issue for investors looking to convert their tokens to fiat.
In this respect, crypto debit cards present a happy middle ground for both investors and merchants alike. Payments with a crypto card does not require the merchant to have any technology to accept cryptocurrency payments, as they use the existing Visa/Mastercard infrastructure widely used by businesses the world over. Crypto cards either convert currency seamlessly for the payment or give the user the opportunity to transfer it into a dedicated fiat account for payments.
New Litecoin Foundation partnership rolls out new card
The Litecoin Foundation, a nonprofit organization dedicated to advancing and promoting blockchain technology, announced that it has teamed up with Bibox Exchange and the blockchain firm Ternio to roll out its own crypto debit card.
The new card, dubbed “BlockCard,” will be released as a joint venture by the companies and, for the meantime, is restricted to U.S. customers only. According to a post published by the Litecoin Foundation, BlockCard will enable customers to spend cryptocurrency both online and in-store worldwide. It might not come as a surprise that the most prominent cryptocurrency available to service users is Litecoin (LTC). Customers will also be able to use Bibox Exchange’s and Ternio’s native tokens, Bibox Token (BIX) and Ternio (TERN) respectively.
While Bibox Exchange is set to act as the custodian of users’ funds and to leverage north of $200 million worth of cryptocurrency trading volume, Ternio aims to provide a dedicated blockchain platform.