Visa Inc (NYSE:V) and Coinbase have announced a partnership through which they will roll out a cryptocurrency debit card aimed at encouraging the mainstream use of digital currencies.
The card will operate on the same principle of letting users use a card to access their money which is stored elsewhere, only this time it will allow users to access cryptocurrencies. One of the main problems that have prevented cryptocurrencies from going mainstream is the need for retailers to adopt crypto payments. However, the new partnership between Visa and Coinbase circumvents the need for retailers to adopt digital currencies for cryptocurrency payments to work.
Retailers have been shying off from cryptocurrencies because they are notorious for market fluctuations. However, Visa and Coinbase made a debit card that will allow crypto-holders to make payments using cryptocurrencies. Their fiat currency will immediately be converted into fiat currency anytime the card is used and the conversion will be handled by Coinbase.
“Customers can use their card in millions of locations around the world, making payments through contactless chip and PIN,” stated Zeeshan Feroze, the CEO of Coinbase UK.
What will the crypto-based debit card facilitate?
The instant cryptocurrency to fiat conversion means retailers will receive payment in the form of fiat currency. The debit card will be linked to the user’s digital currency wallet similar to how regular debit cards are linked to the user’s bank accounts. Visa revealed that the crypto-based debit card will facilitate purchases using Litecoin (LTC), Ethereum (ETH) and Bitcoin (BTC). The goal is to make it easier for cryptocurrency holders to spend their digital currencies just as easily as spending money saved in a bank.
The cryptocurrency debit card will also facilitate smooth ATM withdrawals by avoiding the complex and cryptocurrency-to-fiat process of withdrawal handled by exchanges. The process has traditionally been lengthy and may even take a day or more to complete. However, the new crypto-debit card might thus be the game-changer that cryptocurrency holders needed so that they can enjoy the use of digital currencies to make regular purchases. Visa is pleased to be part of this critical step forward in the digital currency space.