Binance is at present, the most significant spot cryptocurrency exchange on the basis of its trading volume. The strong crypto exchange giant in the market is now set to accept credit and debit cards for processing crypto payments. The company announced it today. Binance, at its core, is crypto to crypto exchange. Which means the exchange does not deal with fiat currencies on its decentralized platform.
However, as per the announcement made today, the company has made a surprising move by allowing credit and debit cards to make payments. These cards will now be able to provide fiat solutions for crypto users of Binance around the world. The exchange said that it wants its traders to experience faster and smoother access to crypto, along with the safest way possible.
As it is a fact that a large portion of the world’s currency/money is still in a fiat form. And hence, the company has made an effort to build a fiat pathway to develop the ecosystem and form more and better long term opportunities for crypto.
The exchange holds a key position in the crypto-space when it comes to dealing in the region of Asia, and it sees $2.3 billion worth of crypto transactions weekly on its platform. But the exchange is still to penetrate the U.S.based crypto market.
However, that could change if clients can buy bitcoin utilizing a Mastercard. This new decision will make Binance a key competitor in the market. One of its leading competitors will be Coinbase, which is one of the few exchanges letting credit and debit cards for use to those outside the U.S. (along with bank transfers). A few countries and states in the U.S. will be restricted; however, those ]restrictions are put from the Simplex side, a spokesperson said. Biance has joined hands with Simplex to help manage this new service.
However, this process must not have been smooth considering its past. In the past, letting payments through credit cards, especially for cryptocurrency purchases has been criticized a lot. Credit card issuers used to be very hesitant and reluctant to let their users make payments for crypto using their credit cards. A year ago, Lloyds Bank in the UK prohibited their customers from making crypto purchases. Before this, big names like JP Morgan and Citigroup had taken similar steps.
The Commonwealth, which is Australia’s biggest retail-centered bank has said that it would not permit its clients to purchase digital assets with its credit cards. The reason that the bank provided after declaring its decision was the volatile and uncertain nature of these digital assets.
Subsequently, a few sources question to what extent Binance will almost certainly acknowledge Mastercard payment.
Binance will at first enable clients to purchase a few specific cryptocurrencies like Bitcoin and ethereum with a credit or debit card. Simplex’s CEO expressed his thoughts on partnering with a significant exchange like Binance.