In a bid to roll out cryptocurrencies to a wider market, Binance Card will aim to bring mass adoption one step closer
Binance has announced that it will release a debit ‘crypto card’ that can be used in the UK and EU for making purchases with cryptocurrency.
A test of the new product was run in April that used fiat currency at the point of sale in order to test the viability of the product.
Countries in the EEA (European economic area) will be able to get the card first, with applicants from the UK needing to sign up on the Binance website and wait for the rollout.
The move is another step in Biannce’s expansion plans, having made a deal to buy CoinMarketCap earlier this year, a new upgrade and now an attempt to make crypto easier to use as a payment method. Swipe, which powers the card, was also acquired by Binance earlier this month.
Consumers in the UK and Europe have likely been used first to test the product due to the more robust regulations that can be found in comparison to the US, where the SEC has caused problems for new and emerging crypto use-cases.
The card will be powered by Swpie, a token that is currently available in 31 countries. Notably, Swipe cannot be bought in the US through regulated channels, which is another likely reason that Binance Card will not be launching there.
The card will be able to facilitate payments from 4 different cryptocurrencies, including Bitcoin, Swipe token, Binance coin and Binance USD.
Measures like this could help to encourage crypto holders to spend their holdings. Around 60% of all Bitcoin in circulation is said to have not moved for around 18 months; so encouraging spending and more transactions could be a way to stimulate its local economy.
Those who wish to sign up can apply from August to receive their card.
How does it work?
Users will be able to top-up their cards by making wallet transfers into their card accounts. This will allow them to move their holdings when they are ready to use them, while also maintaining the safety mechanisms that wallets provide.
In addition, users can also load their cards up using spot exchanges to pay into their cards.
The plan is to roll the card out to around 60 million merchants across Europe, which will potentially provide a good amount of data to look at to access their next steps and the viability of the service.