Start-Ups world-wide have come a long way. They have started utilizing the new age technology – Blockchain. A blockchain based start-up based in Hong Kong focuses to produce fist cryptocurrency Visa Debit Card.
Crypto.com (which was previously known as Monaco aims to accelerate the world’s transition to cryptocurrency) is executing its debit card services to incorporate crypto-based money lending.
In Singapore, the cards will be issued in partnership with a German Bank that already has the appropriate licenses, including the store-value facility license. Therefore Crypto.com does not have to obtain the store-value facility license.
Additionally, as Crypto.com does not issue cards, it also did not apply to issue cards in Hong Kong. The rollout plan is Singapore first, followed by EU and USA.
With this, Kris Marszalek, Co-founder, and CEO said in his statement,
“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 users of crypto wallet services and holders of the company’s crypto debit cards can apply for the loan supported by Bitcoin and its owned native MCO Token. On the technicality front, a stored value facility has already been approved by the Monetary Authority of Singapore (MAS).
With the aspiration of disrupting the credit card industry, the company claims that banks have been frivolously lending to all those people that are not even afforded to pay interest rates. He further said in his statement that “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.”
Like traditional debit card transactions, the credit history will not be assessed for those holders that use the crypto debit card. However, the holders have to follow a certain procedure like KYC norms.
With the risk management policy in place, Crypto.com itself will take the responsibility, especially for Bitcoin and Altcoin transactions. With this, holders of the crypto debit card will be allowed to borrow fiat currency up to 40-60 percent of the cryptocurrency pledged with the company as collateral. This will, in turn, reduce the risk to the whole transaction and company as well.
By linking debit cards of the holders with fiat and crypto wallets, they will support BTC, ETH, MCO, LTC BNB, and other fiat currencies in Singapore, US, Hong Kong dollars.
Needless to say that cryptocurrencies and blockchain technology will replace the way traditional businesses do by streamlining the entire process in a fair and transparent manner!!