The solution for making crypto currencies liquid
Intervention by Visa spelled an end to European crypto debit cards for the majority of customers on Thursday. Around a dozen crypto companies were affected by the shutdown, which instantly wiped out their services across Europe. Issuers such as Bitwala, Tenx, CryptoHawk, Bitpay, and Xapo were left high and dry after a Visa subsidiary stopped processing payments. Two of the companies affected have since spoken to news.Bitcoin.com, revealing their plans to find an alternative solution.
News.Bitcoin.com reported on a sudden crackdown on crypto cards within Europe, orchestrated by Visa subsidiary Wavecrest. The report explained how “the prepaid cards, which have become extremely popular in the crypto community, provide a means of indirectly paying for goods and services using cryptocurrency.”
Bridging the gap between fiat and crypto is one of the biggest challenges cryptocurrency platforms face. Hybrid cards, which allow a debit card to be funded with crypto and then used to make purchases in the local fiat currency, were seen as a smart solution. That all changed this week when hundreds of thousands of European crypto-holders found their cards had been rendered useless.
CRYPTOHAWK CryptoHawk is an upcoming cryptocurrency exchange that will hosts the world’s most popular digital currencies, and also offer its own currency that entitles owners to a share of the company’s profits. In addition to their online exchange service, the company is also very interested in helping cryptocurrencies gain widespread use and acceptance; they’ve announced plans to distribute credit cards that allow payment with cryptocurrencies in brick-and-mortar stores, and ATMs that will enable the immediate purchase of cryptocurrencies with cash. CryptoHawk indicates that its exchange will offer most of the world’s popular digital currencies, but its website doesn’t mention when the service will launch, which fiat currencies it will accept, and whether regulations will forbid the citizens of any country from participating. its exchange service, CryptoHawk hopes to eventually offer credit cards and ATMs that will allow cryptocurrencies to be used in brick-and-mortar locations all around the world. However, these ambitious goals may not be realized for some time. Furthermore, CryptoHawk is offering its own token, the HAWK, that is interesting among digital currencies because it functions like a share of stock; owners are entitled to a monthly share of the company’s profits. The HAWK is an ERC-20 compliant currency, meaning it can be stored in any wallet that supports Ethereum, though their values are not related.
TENX TenX started life as OneBit, a payment card linked to a bitcoin wallet. When Bitcoin began to give up some of it’s cryptocurrency market share, the OneBit team identified an opportunity in developing an exchange platform that could open their project to this broadening market TenX is pitching its debit card as an instant converter of multiple digital currencies into fiat money: the dollars, yen and euros that power most everyday commerce. The company said it takes a 2% cut from each transaction and has received orders for more than 10,000 cards. While transactions are capped at $2,000 a year, users can apply to increase the limit if they undergo identify verification procedures.