Changpeng Zhao, the Binance CEO, recently posted a screenshot on Twitter of the first beat transactions conducted via Bitcoin’s debit card. The exchange’s branded card has been in development since March 2020. It will make it possible for users to pay for services and goods using crypto. Essentially, the card is a fiat gateway into crypto.
About the Binance Debit Card
The card is going to be issued as a white-label product via Swipe, a company in which Binance recently acquired a majority stake. According to the tweet by CZ, the version he used is the beta version. Users can only use it as a virtual card for online purchases for now.
However, the exchange plans to release a physical card for ATMs and PoS purchases soon. Details about the physical card are still scanty. For instance, it is not known if the physical card would implement technologies such as ATM withdrawals, chip, PIN, and contactless payments.
For those who wish to use the card, they will need to pre-pick the digital wallet they wish to debit when funding the card balance. Currently, the card can only accommodate BNB and BTC. The debit card is designed to work like a normal bank card. However, instead of being linked to a banking app, it is linked to a crypto wallet.
Growing Prevalence of Crypto Cards
Users of the Binance exchange can top up the card’s balance via the Binance Card App. They crypto holding is then converted into fiat in seconds. Once they do that, they can pay for services and goods at over 46 million merchants that support Visa globally.
When a user makes a purchase, the Binance Card will convert the crypto into fiat currency instantly. All expenses and commissions are also automatically deducted during each transaction. The card will initially be released in Malaysia then Vietnam, and more countries thereafter. The pre-order for the card is $15.
Crypto cards are becoming quite popular globally. It makes it possible for crypto users to use their crypto holdings at various merchant stores globally. The result is that it provides real-world use cases for crypto coins.