As cryptocurrency gains more relevance to the global economy, bank entities are also evolving and starting to accept this currency as valid to trade in every country.
Visa, one of the most important credit companies around the world, is now making plans to support these digital currencies, which could boost the cryptocurrencies and help it raise over the others as a method of payment.
South-East of the Asian continent, the digital coin is a more frequent payment than other countries. Many new electronic payment platforms are appearing every day, some of them with many years on the market while others are starting to launch.
It is not a surprise that Visa decided to make the first trials for crypto debit cards that support cryptocurrency in that region. Depending on how successful are the results of theses test, it is probable that more other areas will have access to this cryptocurrency debit card.
Binance Card and Visa
Today you can find many different cryptocurrencies that are supported by a varied range of companies. For these tests, Visa decided to partner with Binance, a cryptocurrency exchange platform created in 2017 and located today in Japan.
This partnership means that the cryptocurrency that the Binance Card will support will be Binance (BNB) and Bitcoin (BTC); they will be able to see how people adapt and give use to this new financial tool.
The Binance Card will be connected to the user’s Binance wallet or crypto-wallets that support these two coins. Thanks to this feature, people can transfer their cryptocurrency from their wallets to their Binance Card and start using it for daily purchases.
An exciting feature in these cards will be that those who have them will be able to purchase in fiat money, although initially, it will use USD as the transaction currency.
It means that other currencies will have to pay exchange fees. However, the Binance Card balance will be in cryptocurrency only, even if the payments are in fiat money.
Launch and expectations of the Binance Card
The launch of the project started on March 26, 2020; during April they will evaluate the response and demand of the card, and how does it benefit their users to allow them to have direct access to their cryptocurrency with a plastic card.
The Binance platform also has a mobile app where the users of the Binance Card will be able to check their wallet balance. The different features and technology advances are promising; it could become an essential tool in the upcoming months.
The startup of the Binance Card will focus primarily in Malaysia. However, the developers hope that they will be able to extend the trial to other regions depending on the success of the project. Malaysia was selected as the best option because of the close interaction that its population has with electronic transactions and digital trade.
Today, Malaysia population is running over 32.000.000 people, where 98% of the adult population uses mobile apps on their daily routines. Many other surveys show that people in Malaysia use electronic payments for most of their purchases.
Malaysia is one of the countries where cashless payments are quickly becoming the most common way to make your payments for every daily purchase. According to bank entities in the country, like the Bank Negara Malaysia, promoting the use of electronic payments will help raise the economy of the country, and evolve to become more productive.
These payments are such as online bank transfers, e-wallets, internet banking, and other methods of payments that don’t need the physical coin to make the purchases.
Companies have started to develop digital payment platforms in the country, taking advantage of how the people in Malaysia are becoming more and more dependent on electronic payments.
Great apps like VCash, Alipay, Paypal, even local platforms like TaPay, and many other electronic payment platforms are used every day, replacing the cash for making purchases.
With all these advances in electronic payment, it was only natural that Visa decided to make Malaysia the place where they could start trying the Binance Cards and get feedback on the services. At the same time, the company would be giving a try to the mobile app and see how people manage with this tool.
There is still a little mistrust from the people in Malaysia about some of the platforms online, even if they use it with more frequency every day. However, the name of Visa gives the project a different perspective, because it is a famous company around the world.
The initiative that Visa, together with Binance, has created could become a huge step into the way that the countries manage cryptocurrency. One of the most significant flaws that digital currency has is that it is volatile, so the price changes frequently.
If companies like Visa, which has a reputation on the credit platforms, start giving more importance to cryptocurrencies, this digital money will have a base to start becoming a stable and standard currency around the globe.
Binance CEO Changpeng Zhao, one of the co-founders of the group, is confident about the results that the Binance Card project will give, and explain that hopefully, before 2020 ends, more countries would be getting to familiarise with the crypto debit cards.
This advance in the technology could make a difference not only in the cryptocurrency market but would undoubtedly affect the world’s economy. People would be able to make their purchase and spend their cryptocurrencies without having to change them into fiat money. Also, it would simplify the way to make purchases in other countries, without having to worry about changing your money into the currency of that country, paying the exchanges tariff implemented.
Still, the trials are just starting, but the premise is well made, and the project has a solid base to start building. With the support of Visa, the perspectives for cryptocurrencies for the end of the year are promising and exciting.