First introduced by a Brooklyn banker John Biggins in 1946, credit cards have become the most popular means of payment nowadays. According to the New York Federal Reserve survey, 27.5% of respondents applied for credit cards over 2019. Slowly but steadily, cards replace cash, and not without a reason. They are lightweight, easy to use and protect your funds to some extent in case of a loss or a theft.
However, centralized financial systems have their drawbacks as well, and for some of them, cryptocurrencies can become a solution. What if one combines two technologies? Together with the advantages provided by the blockchain technologies, the results could be unbelievable.
The advantages of cryptocurrencies
Initially created as an alternative to the highly centralized banking area, Bitcoin and all its derivatives come with a set of features that give them a head start compared to traditional means of payment. Here are just some of them:
Divisibility is one of Bitcoin’s key characteristics. This makes it a perfect tool for micropayments as there are no limitations on the amount of money you may send to your peer.
Once the payment is verified by the network, it cannot be undone. There is no central party to reverse a transaction, which may be good protection for merchants from fraudulent customers.
With Bitcoin and most of the other cryptocurrencies, all transactions are verified on a public blockchain which adds transparency to the process. There’s no more need for middlemen such as banks and other financial institutions to govern the deals between the parties.
4. No geographical limitations
You can send cryptocurrencies to your peers regardless of their location. Blockchain technologies remove the barriers between countries and make it possible to send money overseas at low fees.
5. Fast transactions
It requires no more than a few minutes for the money to be transferred via the blockchain while interbank transfers may take up to a few days.
Why cryptocurrencies still cannot be adopted at scale
The advantages are indisputable and you may wonder why cryptocurrencies are still not accepted on every street corner and why one cannot store BTC on a usual credit card. Although there are already many merchants worldwide that accept Bitcoin along with fiat money, this new invention is still far from being massively adopted and there is a number of reasons for that.
- Complexity. For one, the technology itself is rather complicated. In order to pay with BTC, some technical skills are required, which may scare off non-tech-savvy users.
- Diversity. Next, cryptocurrencies are aplenty. There are already more than 5,000 of those listed on CoinMarketCap. It’s a complex task to exchange one digital coin to another, and the constantly fluctuating rates only make things worse.
- Legalization. Finally, authorities are very rigid when it comes to approving new payment technologies. There are just a few regions in the world where cryptocurrencies are legalized and merchants can freely accept them for their goods and services.
A solution is needed that would eliminate all these issues and bring forth the mass adoption of new technologies.
Could a crypto card do that?
In such a situation, a bank card supporting cryptocurrencies is an obvious answer to this complicated question. Just imagine: a bank card where you could store cryptocurrencies and pay online and in the real world just as you do with a traditional credit card. Wouldn’t it be marvelous?
Credit cards have become a customary element of our lives, they are pretty simple and don’t require any specific knowledge to work with. A multi-currency wallet attached to a card would make it possible not only to switch cryptocurrencies between each other with ease but also convert crypto to fiat to withdraw at any ATM.
A crypto card would not be able to push the legalization of cryptocurrencies, that’s true. But it could eliminate the technical obstacles of the blockchain industry and become a perfect tool to accelerate the adoption of cryptocurrencies in real life.