A Hong Kong startup intends to release the first cryptocurrency Visa debit card. More than one hundred thousand cards will become available to Crypto.com clients around the world in the coming months.
Crypto.com has joined Germany's Wirecard Bank for the project and will begin issuing debit cards.
“It is important for crypto asset owners to have peace of mind knowing that they can convert their crypto assets back into fiat currency and cash at any time,” said Chris Marsalek, co-founder and CEO of Crypto.com.
Therefore, the company is bringing to the market a new financial instrument that meets the needs of users, which will provide easy management of digital assets in real life. Its main task is to provide a fast and cheap process for transferring crypto assets to fiat and vice versa.
Initially, Crypto.com will develop the market of Singapore and Hong Kong. The company plans to expand its activities from simple debit cards to cryptocurrency lending. The company intends to provide owners of cryptocurrency wallets and Visa cards with loans secured by Bitcoin or the MCO token as collateral.
Marsalek said combining debit cards with Crypto.com's new credit options could result in the destruction of the credit industry's current "unethical" business model. The loans that exist today allow customers to borrow funds without having guaranteed financial security to pay interest rates.
Crypto.com initially cuts off such credit risks by providing customers with a loan in the amount of 40 to 60% of their cryptocurrency funds. In this case, the KYC procedure will be mandatory to receive such a loan from Crypto.com. The risks of volatility with bitcoins and altcoins will be taken by Crypto.com itself.
The company plans to link the new debit card to fiat and crypto wallets that support popular crypto assets BTC, ETH, LTC, MCO, BNB and seven fiat currencies.
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