A Hong Kong based crypto start-up is about to make history. Crypto.com, formerly known as Monaco, will be rolling out what is touted to be Asia’s first crypto VISA debit card, a product that offers one feature that crypto investors have been looking for — easier conversion of cryptos to fiat currency.
Crypto.com to Launch First Crypto Visa Debit Card in Singapore
Hong Kong based crypto start-up Crypto.com is about to launch Asia’s first cryptocurrency VISA debit card, according to a report by the South China Morning Post. However, the card’s launching won’t happen in the company’s home country but in Singapore.
Crypto.com partnered with German-based Wirecard Bank, a bank known for its partnerships with various fintech firms. As its partner, Wirecard Bank makes it possible for Crypto.com to issue its own brand of VISA cards as the bank already acquired a stored-value facility license from the Monetary Authority of Singapore.
While the card will initially be launched in Singapore, Crypto.com already revealed its ambitious global expansion plans. The crypto start-up said that it plans to roll out as much as 100,000 cards to the rest of the world in the next two months.
Easier, Faster Crypto-to-Fiat Conversion
Kris Marszalek, Crypto.com founder, and CEO believes that there’s a huge untapped market for his company’s card out there. While investors are prepared to go into cryptos for the long haul, most are also scouting for a product or services that would allow them to rapidly change their crypto holdings back to fiat currency in case of emergencies.
For Marszalek, their crypto VISA debit card is the answer and said:
“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.”
Plans to Compete With Credit Cards With Lending Product
But Crypto.com is not stopping with just a new crypto debit card. The start-up is also planning to “disrupt the credit card industry” with its own lending service.
Marszalek believes that with most banks’ high-interest rates, their practice borders on being an “unethical business.” They offer unsecured revolving credit to individuals, which eventually puts credit cardholders in a financial trap.
Crypto.com will not operate in the same manner as it won’t offer unsecured loans. Rather, clients can apply for a loan with their cryptos as collateral. The company will only release loans that are between 40 and 60 percent of the tokens’ value.
As noted by Marszalek:
“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.”