The cryptocurrency world has seen amazing growth in the past two years, and more and more people are investing in it or showing interest in using it to purchase products and services. However, exponential growth has been hindered by some real-world constraints. Not many stores and websites have begun to accept these virtual currencies as a payment method. There are other reasons for this. Retailers may worry about the exchange rate in this highly volatile industry, they may also find new technologies difficult to understand, or believe that the demand for transactions in popular currencies such as Bitcoin and Ethereum is still low.
Fortunately, in order to solve these problems, creators are proposing innovative solutions and products. One of them is an encrypted debit card.
What is an encrypted debit card?
Encrypted debit cards are similar in concept to conventional bank debit cards. They allow users to use Bitcoin, Ethereum, Ripple and other cryptocurrencies to complete daily transactions. One of the biggest benefits of using encrypted debit cards is that users do not have to worry about whether the physical card will be accepted by the merchant to a large extent. This is because many of these products are released with Visa and Mastercard, which means they can be used in millions of locations.
Another advantage is that users do not need to pay sky-high exchange rates when traveling abroad. With a traditional debit card, the money in our bank account is first converted into U.S. dollars or the local currency of the country/region that the person visits. However, encrypted debit cards and encrypted coins act as a bridge to other legal currencies, thereby saving funds for conversion.
How do these cards work?
First, users must use a mobile application or website to recharge their encrypted debit card with the virtual currency of their choice. Suppose you want to buy a cup of coffee. How do you pay? You initiate a transaction to the coffee shop owner in an encrypted manner, and the card provider will convert the digital coins into legal tender and trade them into the service provider’s account. There are also some benefits. Most encrypted debit cards offer generous rewards and spending limits. In addition, compared with traditional debit cards, transaction fees are lower.