A Hong Kong-based blockchain startup, Crypto.com, is set to debut Asia’s first cryptocurrency Visa debit card. The company plans to ship over a 100,000 cards to Singapore in the course of the next two months.
According to Kris Marszalek, co-founder of Crypto.com, the company hopes to make the most from capitalizing on an untapped market. He added, “To holders of cryptocurrencies, having the peace of mind that you can readily convert back into fiat currencies and cash out is very important. 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”.
The company previously went by the name Monaco, had its name changed to Crypto.com back in July. It is currently in the works to apply for a money-lending license in Singapore and Hong Kong. The company is aiming to slowly shift from a cryptocurrency debit card platform to a cryptocurrency-backed money lender according to Marszalek.
If the company’s efforts pan out as expected, individuals that possess the company’s Visa card and its cryptocurrency wallet, would be able to take a loan that would use Bitcoin and MCO (Crypto.com’s token) as collateral. A German Bank, Wirecard, has partnered with Crypto.com to issue its Visa debit cards. The Monetary Authority of Singapore has authorised the bank a stored-value facility license.
Marszalek commented on the current credit card industry and said, “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”.
The debit card being provided by Crypto.com would be connected to both fiat and cryptocurrency wallets that would permit its user case to spend their cryptocurrencies once they have converted them to fiat money.
Crypto.com currently supports Bitcoin, Litecoin, Ethereum, MCO and Binance Coin; all of which can be converted into the Singapore dollar, the U.S dollar and the Hong Kong Dollar. The Hong Kong based blockchain startup has raised over USD 26.7 millions from its token sale that was conducted last year.