Hong Kong-based Crypto.com is opening up new doors with Asia’s first cryptocurrency Visa debit card. The blockchain startup announced this week that, in partnership with German company Wirecard Bank, the cryptocurrency Visa debit card will initially be issued in Singapore. It will then be rolled out to more than 100,000 customers worldwide.
Crypto.com used to be Monaco prior to its name change in July of this year. The company launched the cryptocurrency Visa debit card in order to compete with traditional credit cards as well as to offer crypto investors the option to immediately convert their coins into fiat currency.
Crypto.com co-founder and chief executive Kris Marszalek says, “Not all exchanges support crypto-to-fiat transactions, and even if you hold your digital assets at the exchanges’ wallet, the withdrawal process is also complicated. We believe our product addresses a real need, and enhances trust in digital assets.”
In the future, Crypto.com plans to expand its operations by offering money lending services which are backed by cryptocurrency. This is also meant to provide consumers with a more financially feasible alternative to credit cards. With their planned money lending services, Crypto.com is going to protect the consumer by encouraging responsible borrowing. They plan to achieve this by limiting the borrowed amount to 40-60 per cent of the crypto they hold as collateral.
“The credit card business model is one that is bordering on unethical business, as banks make a big chunk of profit from people who cannot afford late fees. These people should not be given a credit card in the first place,” Marszalek continues.