As blockchain technology and public awareness of cryptocurrency continues to grow, a range of new use cases are entering the market and improving the efficiency of existing financial systems.
Despite its many applications, the original use case of Bitcoin (BTC) as a medium of exchange remains one of the most fundamental applications of blockchain technology and although BTC may not be the best. asset to use for payments, there are service providers that have made the process of settling transactions in other cryptocurrencies easier.
For now, the most widely accepted way to use cryptocurrencies for direct payments in everyday life is through crypto debit cards that allow users to convert their crypto holdings into US dollars. They basically work the same way as a prepaid debit.
With institutions showing increased interest in the growing cryptocurrency industry and general awareness of blockchain technology at an all-time high, crypto debit cards are becoming more prevalent as new players are entering the field to try to capture a share of this growing market.
Three of the debit cards with a track record of success and attractive rewards are BitPay, Crypto.com, and the Nexo card.
BitPay Prepaid Mastercard has become a top choice for many cryptocurrency holders thanks to its ease of use and low fees. It was originally launched in 2016 as a US-only debit card and primarily functioned as a Bitcoin payment processor.
BitPay now supports eight different fiat currency options, as well as support for Bitcoin, Ethereum (ETH), Gemini Dollar (GUSD), USD Coin (USDC), Paxos (PAX), and Bitcoin Cash (BCH).
– BitPay (@BitPay) February 23, 2021
Users who want to get the card must first pay an activation fee of $ 9.95 and provide their social security and driver’s license number to access it. Once approved, the user can load cryptocurrencies into their BitPay wallet and then convert them to dollars to make them available on the card.
There are no transaction fees for users in the United States, and the card has a daily spending limit of $ 10,000 with a maximum account balance of $ 25,000.
For cryptocurrency enthusiasts, the Crypto.com debit card is one of the best choices due to the fact that it has a built-in native token called Crypto.com Coin (CRO) which functions as the primary currency. and the reward token for the blockchain.
The benefits of using the card include 100% cashback on popular streaming services such as Netflix and Spotify, as well as up to 8% cashback on regular purchases.
Crypto.com users can choose from a list of over 100 of the major cryptocurrencies to fund their card by depositing them into their account and converting them into a stablecoin which is then loaded onto their debit card.
We are delighted to share the news of a historic moment: https: //t.co/vCNztABJoG & @Visa successfully completed the first transaction settlement using USDC!
A milestone for the industry as crypto and fiat networks begin to converge.
– Crypto.com (@cryptocom) March 29, 2021
The Crypto.com ecosystem offers five different Visa debit cards that have a tiered reward structure that increases based on the amount of CRO a user has put into their account.
The levels range from the requirement of 5000 CRO participation for the Ruby Steel card to 5 million CRO staked to obtain the Obsidian card which offers 8% cashback on all purchases. There is also a basic version of the card which does not require any staking and offers a 1% discount on all purchases.
A third choice that offers a different structure than most crypto debit cards is the Nexo card and its native NEXO cryptocurrency which currently trades at $ 3.63.
Instead of requiring users to convert the cryptocurrency held in their accounts into US dollars before use, Nexo issues an instant loan based on the value of the cryptocurrency held in a user account and settles the transaction in currency. fiduciary.
Our Crypto ™ Instant Line of Credit is exactly what you need.
Need more reasons? Check out our blog post: https: //t.co/uB0SkM4Qke
– Nexo (@NexoFinance) April 22, 2021
This allows users to access the value of their cryptocurrency assets without having to sell them. The loan can be repaid using cryptocurrency or fiat through their Nexo account with the option of having the minimum payment repaid by the return earned on a staked user’s cryptocurrency assets.
The interest rates for the fees on the card are set at 5.9%, and there are no monthly or annual exchange fees. On top of that, users receive 2% cash back in the form of Nexo tokens or BTC.
As more and more banks and institutions in the United States and around the world take a share in the cryptocurrency industry in order to find ways to capitalize on the growing market, crypto debit cards are emerging. likely to become a more important part of traditional payment channels.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of UKTN.com. Every investment and trading move comes with risk, you should do your own research when making a decision.