The most awaited Bitcoin debit cards are about to be released by the end of June as Bitcoin vault Xapo has announced that it is on the verge of developing such a solution for Bitcoin users. Earlier, in March this year, after launching an insured, secure repository for big BTC investors, the company had announced for bringing up Bitcoin debit card as well.
The company had then announced that with the Bitcoin debit card that will be accepted anywhere in the rails of a card network, won’t be charged an additional fee as it is included in it. According to Wences Casares, founder of Xapo, the Xapo debit card will be accepted by any business in the world that accepts debit or credit cards from the bank’s card network partner.
Wences Casares is someone who has worked with several payments solution providers in the past and brings his experience for Xapo and according to him Bitcoin will be worth a million when it matures. Talking about the debit cards, he said that he would not identify the company’s bank partner or its card network.
Currently, a major problem with a lot of Bitcoin users is that they are unable to use the digital currency outside the tech-savvy early adopter category, and a debit product could increase adoption. Moreover, when many digital payment systems have issued plastic cards as a way to appeal to more consumers, it was just a matter of time for Xapo.
Accepting Bitcoin Merchants save Money and Pass Profits to Customers
There is also a warning for merchants as transactions will go over a card network’s rails, they won’t benefit from Bitcoin’s near-free transfers; rather, they will have to pay the same interchange fees they pay for other debit card transactions. Nonetheless, the money saved by accepting digital currency is a major reason merchants use them.
According to Wences Casares when a customer swipes Xapo Debit, the company will
convert the user’s Bitcoin funds to a local currency in real time to pay the merchant. Optimistic views on Bitcoin are being shared by many as they believe that some Bitcoin enthusiasts want to see the cryptocurrency go mainstream using tools like credit card and debit card.
For instance, many users feel that routing Bitcoin transactions through a credit card network defeats the purpose of using the digital currency itself. However, the likely outcomes would be seen after the users start using Bitcoin debit card or credit card.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org