Satoshi Nakamoto created Bitcoin with an ambitious goal. It was planned that cryptocurrencies would become a new generation of digital money, an alternative to traditional centralized payment systems. However, despite the 15-year history of the crypto industry, most people are still unable to implement these tools into their daily lives due to the lack of convenient payment solutions. However, this does not mean that the goal is unattainable, but outlines the range of tasks that need to be solved to achieve it.
The evolution of cryptocurrency payments
It all started with the creation of a cryptocurrency to transfer value in the digital space. The practical use of cryptocurrencies in everyday payments became a reality only many years later.
At the initial stages of the industry’s development, interfaces for managing crypto assets did not exist, and the very first developments were quite difficult to use. The emergence of more progressive and convenient technical solutions has simplified life for all cryptocurrency users. But cryptocurrencies have still not been widely accepted in the “real” world due to a lack of regulation and general misunderstanding.
This problem is still relevant today. The industry took a huge step forward towards integrating crypto assets into the real economy after the introduction of stablecoins. Money transfers using USDT TRC20 are faster and cheaper than in the banking system. The further adoption of crypto assets is due to the active development of “bridges” between digital and fiat money.
The first means to bridge this “chasm” were P2P platforms, where users could directly trade various digital assets, mainly Bitcoin and Ethereum. One of the earliest and most famous services is the legendary Local Bitcoin, which dominated the market before the advent of large centralized exchanges.
The next stage of development was online exchangers offering conversion of cryptocurrency to fiat and vice versa. This progressive solution also had and still has disadvantages, in particular high commissions, manual transaction processing, blocking, etc. Later, some exchange services evolved into full-fledged classic exchanges. Finding a platform where CRO to USDT swap is most profitable and convenient today is not so difficult.
Still, all these services are not convenient enough for everyday use. The most modern and convenient payment solution is a cryptocurrency card.
What is a crypto card?
The Crypto Card is an innovative product that combines the key advantages of cryptocurrencies and traditional fiat payment methods. The cryptocurrency card has two components:
- Backend. A cryptocurrency wallet or account on a crypto exchange where you can store and manage digital assets.
- Frontend. A regular payment card, externally and functionally similar to traditional bank cards.
The card issuer provides automatic conversion of cryptocurrency from the wallet to fiat currency at the time of the transaction. This process is carried out through the use of proprietary liquidity sources and software. The exchange is carried out instantly, almost imperceptibly for the user. This method of exchange is much more convenient than using exchangers and P2P services.
Over the past five years, cryptocurrency cards have been issued by various providers, crypto exchanges and exchange platforms. However, some, like Binance Card, have faced regulatory issues and been shut down, while others, like Coinbase Card, are subject to jurisdictional restrictions.
How are crypto cards used?
So, a crypto card is functionally identical to a bank card; accordingly, it can be used for a variety of purposes.
- Online and offline shopping. The crypto card is convenient to use for purchases on any platforms that support non-cash payments, including in physical retail outlets. At the same time, the seller is not even required to have a crypto-processing service.
- Trips. Automatic conversion of crypto into the currency you need eliminates the need to carry cash with you or open accounts outside your home country.
- Transfers and receiving salaries. Among employers in the IT sector there are more and more fans of payments in cryptocurrency. This is really convenient, especially when the company has people working remotely from different countries of the world.
- Charity. Using a crypto card, you can easily donate money to almost any charitable foundation, regardless of its jurisdiction.
- Helping relatives abroad. With crypto cards, the problem of international transfers ceases to be a problem.
Using a crypto card, you can spend cryptocurrencies wherever Visa or Mastercard payment cards are accepted. This expands the scope of your assets and eliminates the need for the services of a P2P platform or exchanger.
By choosing the optimal service in terms of jurisdiction and supported currencies, you can cover a significant part of your expenses with a crypto card, be it helping friends, buying coffee or charitable contributions.
In addition, crypto card developers often provide additional opportunities for earning or saving, such as cashback or a loyalty program.