How Credit and Debit Cards Can Help Improve Cryptocurrency Adoption
Scroll DownAchieving everyday circulation is the dream and Holy Grail of all cryptocurrency development teams. Ever since Bitcoin came on the scene in early 2009, the ultimate goal for this token has always been to see it being put to use on a level that would rival major international currencies such as the United States dollar and the euro. Most tokens follow this hopeful philosophy, which has been elusive to say the least.
Cryptocurrency wallets mostly appeal to the type of tech-savvy consumers who truly enjoy cashless methods of payments, but we should not assume that all these users are fond of using their smartphones as their virtual wallets. The same can be said about retail merchants who like the idea of not having to deal with coins and bank notes, but who prefer the more familiar feel of settling credit and debit card transactions.
Various cryptocurrency trading platforms such as Coinbase and BlockFi have figured out that providing clients with debit cards linked to their digital wallets is a good way to get them to spend, which is one form of real circulation. E-commerce merchants are quite happy to accept credit and debit cards as long as they work on major networks such as Visa, MasterCard, and American Express; as long as platforms are willing to work out exchange rates on the spot, merchants are not too worried about handling cryptocurrency transactions.
One of the reasons why many people are against cryptocurrencies is the fact that they believe they are an anonymous form of payment, which is not an accurate assumption, and thus some are worried that it will lead to illegal activities such as money laundering and fraud. Bitcoin Cash is no different in this regard because it does not come with any form of identity verification or identity-related data such as name, address, or phone number. When tokens are transacted through debit cards, however, consumers and merchants forget about such apprehensions.
All this data is collected in real time when you transact with other people. This information is usually kept by banks and financial institutions for a few reasons. First, it allows them to identify people who don’t have an established banking history. Second, it allows these institutions to detect financial crimes on an ongoing basis.
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