The VISA debit cards will allow UK-based users to spend their Bitcoins more easily.
The brand new UK-based cryptocurrency exchange, London Block Exchange (LBX) recently announced its plans to release Visa-based cryptocurrency debit cards.
The LBX itself has launched just days ago. This platform enables users to trade cryptocurrencies. Their latest venture promises to provide British users with a debit card that is tied to their cryptocurrency savings and can automatically convert Bitcoin to Pound within seconds for easy transactions.
The debit card, dubbed Dragoncard, was created to provide a counter-argument or one of the largest discouragers of cryptocurrency: it’s relative impracticality in everyday life. In the UK and Europe merchants and retailers do not accept Bitcoin and other cryptocurrency payments as readily as their eastern counterparts. So far only a few companies expressed interest in expanding their Bitcoin-friendliness, and even some of these have been discouraged by Wall Street naysayers and arguments centered around Bitcoin’s contributions to money laundering and terrorist funding.
The moment a user swipes their card at any retailers, the money is first paid by LBX in pounds and is reclaimed afterward from the specific user’s wallet. For every transaction, a user will be charged a fee of 0.5%.
There have been several other attempts to introduce Bitcoin to the mainstream retail market, however, this is the very first time a firm has tailored the service to British users. Th attempt has already been greenlighted by the UK financial regulator, the Financial Conduct Authority (FCA), and promises to attract several more users to cryptocurrency.
So far Dragoncard has had a warm reception as LBX has already raised £2 million from private investors. The former Credit Suisse banker, Adam Bryant will act as the LBX’s chairman.
It’s logical that companies will start looking for ways to make cryptocurrency more appealing to the mainstream, especially considering the record-breaking year that Bitcoin, Ethereum, Ripple and several others have experienced. Bitcoin alone went from $1000 to $7000 since the start of the year. Despite this, prominent financial leaders have cautioned against the so-called Bitcoin phase, and have taken to warn potential investors about the investing bubble.
A large obstacle which had to be bypassed in the process of Bitcoin’s payments is the increasing time it takes to conduct a single transaction. However, to bypass this, LBX will make the transaction on behalf of the user, before reclaiming the spent balance from the user.
According to LBX’s chief executive and co-founder, Benjamin Dives, London has not been quick to adapt to the need for Bitcoin payment systems, despite it being one of the world’s financial capitals. This has often discouraged interested London-based investors from participating in Bitcoin.
Dive expressed his hope that this latest venture will empower its users to become more knowledgeable and confident about, what LBX, believes is the future of finance.
Visa has also been slow to provide users with cryptocurrency solutions, despite the rising demand for it. Previous attempts for similar card concepts have been withdrawn due to unclear policies surrounding cryptocurrencies in the country which the card aimed to operate in.
According to LBX, they did not foresee similar problems arising with Dragoncard, mainly because all transaction would be conducted in Britain’s fiat currency.