Jul 30, 2018 14:25 UTC
Dec 7, 2018 at 08:01 UTC
Vitalik Buterin Proposes Preloaded Crypto Cards
BTC Wires: Vitalik Buterin, mastermind of the digital token ‘Ethereum’, proposed a new idea which will help boost the acceptance of cryptocurrency at global levels. He tweeted this recommendation, wherein he talks about launching preloaded cryptocurrency cards (essentially, crypto gift cards) which would be made available at all corner stores.
Here is what he exactly mentioned in his tweet:
“I think there’s too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.”
The preloaded cryptocurrency cards, as envisioned by Buterin, are “to pay for transaction fees, and micropayments in applications.” They must not be confused with the ones to be spent at the stores. They would simply serve their role of a convenient way to avail digital currency.
Also, Buterin mentions them in the context of Crypto-Gift Cards. Gift cards, in general, are never really recoverable at physical locations i.e. they are applicable only to specific online stores, such as Steam or iTunes. Additionally, such offerings need to be operated periodically and also, there is an activation process prior to its use. From this, we can get a rough idea related to the working of the crypto-gift cards.
They would probably be linked to an online broker and would not merely function as paper wallets containing certain Bitcoin balance within. Gift cards, do not require any kind of identification procedures. On the contrary, in case o crypto-cards, it would be mandatory for the brokers to collect identity from the investors. This might pose a serious limitation regarding the preloaded crypto cards.
However, there are a handful of reporters who claim the former availability of such cards in the market. Bitnovo, in Spain has been offering preloaded Bitcoin cards in various stores for a while now. A number of crypto-traders are making use of Flexepin, as a ‘voucher’ in Canada. On the other hand, Pundi X, in Hong Kong, not only offers their own cards but also, they have started offering point-of-sale card readers. Furthermore, various peer-to-peer exchanges such as Paxful, allow interchange of crypto for gift cards and vice versa.
All in all, the idea if propagated and accepted at large, would result in a number of pros and cons over time.