UnionPay, a Chinese financial services firm, commonly referred to as the Chinese Visa, recently signed a deal with Danal, based in Korea. Through the deal, the two firms will launch a digital card that supports crypto payments.
Launch of the Virtual Card
The virtual card is going to launch by the end of 2020. It will be accessible via Paycoin, a virtual asset wallet created by Danal. Users of Paycoin will be able to use their crypto assets at over 30 million merchants globally that support UnionPay.
According to a statement by Danal, Paycoin users can use their crypto in Mainland China. The virtual card will offer support for fiat payments as well as Paycoin for payments and top-ups. Today, Paycoin has over 760,000 registered users. The Paycoin crypto coin is listed on various crypto exchanges including Liquid, Upbit, Coione, Gdac, and Huobi Korea.
The Paycoin crypto coin was launch in 2019 as a solution for slow cross-border payments and high fees. According to a statement by Park Sang-Man, the Danal CEO, the prepaid service will eliminate the inconvenience of currency conversions during international transactions. Additionally, it will help to eliminate concerns about credit card theft. He added that Danal planned to make the service available across the world.
Card Launched despite China’s Hostility to Crypto
The UnionPay deal with Danal was launched despite the hostile stance of China towards crypto. Since the end of 2017, China has come down hard on the crypto sector. They were amongst the first major economies to ban ICOs and crypto trading.
Many international players in the financial world will no doubt be watching the deal closely. They will use it to assess the current conditions of China’s crypto sector. Due to China’s huge market potential, many firms will no doubt be exploring how they can use the deal to model the potential launch of crypto services in the nation.
While China is fiercely opened to the pervasion of decentralized crypto currencies within its economy, the country has been actively pursuing a central bank digital currency. They have already launched trials in various cities in the nation. The country is pushing for the full digitization of its economy.