Cryptocurrency payment cards are an exciting area in the industry as they allow people to spend their digital assets in the same way as they spend their fiat— they can be used in any shop that facilitates credit/debit card payments. These types of cards make the act of spending your cryptocurrency a pleasure. No longer do people have to fiddle with long public addresses and private keys – the technology behind the payment cards handles all of that for you. Long-term coin holders have been interested in this technology for years because they would much prefer using their crypto to buy products than convert it to fiat first on an exchange. However, these cards may serve an even greater purpose— they may help bring cryptocurrency to the masses.
By far the largest barrier that a newcomer to cryptocurrency must overcome is that of the technology. To people who are only familiar with traditional banking, it can be daunting to use things like public and private keys or to understand that your money is held only at an address. Beyond that, it gets even harder if you want to use your cryptocurrency in the outside world – you may struggle to find a physical shop which accepts them. As top regulator Joseph Otting stated, it is entirely possible for cryptocurrency to become mainstream— but for this to happen its method of controls may need to be simplified first. This is exactly what crypto payment cards are doing – they are making cryptocurrency as simple as using fiat.
Cryptocurrency cards, such as Wirex, are paving the way for mass adoption of digital assets. Within the coming years (or even months), we could see cards like this being used by a large amount of the general public. Having a card that can handle both fiat and crypto is almost objectively better than having a traditional debit card, and it might not take long for the public to become aware of that.
Right now, services like Wirex are still in their infancy and can only offer plastic cards in specific countries, but the service can also be used via their virtual NFC option. Wirex currently supports both Bitcoin and Litecoin, but it is possible that in the future they will add other cryptocurrencies too. As stated in their blog, the reason for adding Litecoin is that ‘it’s faster than Bitcoin, has lower blockchain fees and may become a global payment option available on dozens of big brand websites in coming months.’ Essentially, Litecoin is the perfect alternative to legal tender when it comes to everyday purchases.
Kai is a cryptocurrency copywriter and professional trader. He can often be found investigating various cryptocurrencies, whitepapers, and blockchain technologies. Kai has been a professional writer for 5+ years, and has invested in 50+ different coins and tokens. He also currently studies Law and Philosophy at university.