The Asian financial markets are preparing for a huge impact as Hong Kong based cryptocurrency start-up Crypto.com is getting ready to bring its cryptocurrency Visa debit card to the forefront. The company will be launching the continent’s first crypto debit card. Crypto.com announced on Wednesday, Oct. 3, that its partner bank has already applied to issue cards in the city. In the next two months, the company will ship over 100,000 cards to its global clientele.
Disruption Begins in Singapore
The first batch of the cards will be delivered to users in Singapore, then to the international user base of Crypto.com. The Visa debit card will allow crypto users to pay with digital currencies at various merchant establishments. Explaining the ease of use of these cards, Crypto.com co-founder and Chief Executive Kris Marszalek said:
“To holders of cryptocurrencies, having the peace of mind that you can readily convert back into fiat currencies and cash out is very important.”
He added that some cryptocurrency exchanges do not support crypto-to-fiat transactions, which means that fiat liquidity of digital assets is limited. Users usually have to depend on their exchange’s wallet to facilitate transactions. He said that Crypto.com’s credit card addresses “a real need” and improves user trust in digital assets as well.
German Bank Partners With Crypto.Com
The cards are issued by Germany’s Wirecard Bank, which already holds a stored-value facility license from the Monetary Authority of Singapore.
Crypto.com recently underwent a rebranding and was earlier known as Monaco. The company plans to start a money-lending business in Hong Kong and Singapore after obtaining the necessary licenses from authorities.
According to Marszalek, the company will slowly transform from a crypto debit card platform to a crypto-backed money lender. Users of the company’s Visa debit cards will be able to get loans collateralized with Bitcoin and even Crypto.com’s own crypto token, MCO.
Marszalek also said that the company’s offering is expected to disrupt the credit card industry. He went ahead to call out banks for issuing an unsecured revolving credit to consumers who cannot afford interest rates and labeled it “unethical business.” He said that people who cannot even afford late payment should not be given a credit card. Marszalek also noted that Crypto.com would not face any credit risk from its borrowers as they will only be able to borrow 40 to 60 percent of their total crypto collateral deposit.
The company will follow know-your-customer guidelines when issuing debit cards to applicants but will not check their credit history before issuing loans.
Crypto.Com Will Ship Over 100,000 Crypto Visa Debit Cards in Asia in 2 Months was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.