Bitcoin debit cards are often seen as the perfect hybrid solution between cryptocurrency and traditional payment methods.For all of the convenience these solutions offer, they still require a bank to control user funds and third party services managing the Bitcoin wallet. At the same time, the different Bitcoin debit card offerings are becoming more competitive, which is good for cryptocurrency enthusiasts.
Bitcoin Debit Cards Are Convenient At A Price
For those people who still associate Bitcoin with anonymous payments, debit card are completely out of the question. The majority of Bitcoin debit cards come in physical form, and will require an address to be sent to. Granted, this can be done with fake information, but doing so would limit the usability of this payment medium.
Unfortunately, every debit card loaded with Bitcoin is still issued by a bank. Most card providers in the Bitcoin space use the same bank, which will let users spend up to US$2,500 for the lifetime of the card without verification. Lifting those limits will require some identity verification, which nullifies the use of fake information. That is, unless one is very good with photoshop, albeit we strongly advise not to rely on such tools to lift the card limits.
Depending on which provider one chooses, the card itself will look rather generic as well. Most of these cards are either black or gray, with the usual information embossed on the front. To avoid unwanted questions, an issuer that does not have their specific logo on the card may be a better choice. This is entirely dependent on where one lives, and how big payment card penetration is in that market, though.
One thing that is quite interesting is how users will never have to deal with the card issuing bank directly. Only the card PIN code activation method has to be completed through an automated phone call, but that’s the only link to the bank users will have. There will be no monthly statements mailed to your home address either, which is either a good or a bad thing.
When making international payments, do keep in mind there will be a currency conversion charge for most cards. This could be a dealbreaker for some people, but a similar issue would present itself when using a regular bank card. All in all, Bitcoin debit cards have their use, but they are not perfect. Users will have to determine whether or not they want to complete the KYC and AML requirements, though.
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