Cryptex to Allow Debit Card Holders to Convert Digital Currency into Cash

The Bitcoin to cash ATM and debit card provider company Cryptex will introduce personalized cards. The cards will form of cryptocurrency.

To understand cryptocurrency, we need to understand Bitcoin. Bitcoin stands for virtual currency which is not regulated by any central authority such as US treasury and could be used for exchange. Creation of bitcoin, commonly known as mining involves cryptography.

A shortcoming of Bitcoin sponsored digital currency is the difficulty faced by consumers to turn cryptocurrency into cash. As there’s no centralized authority, many banks don’t recognize cryptocurrency and debit card holders couldn’t turn digital currency into cash.

Consumers could overcome this problem if they use Discover™ card. This is a type of debit card that’ll enable them to turn cryptocurrency into cash at a number of ATMs and POS software by different merchants, given the merchants accept the Discover™ card.

The  Discover™ card will be usable in more than 70 countries. Good news for Bitcoin users in US as more than 90% of US ATMs will support the card. Another top notch feature of the Cryptex card will be facilities provided to Bitcoin ATM industry such as a secure network across the globe using which a Bitcoin user would be able to convert coin to cash.

Jamon Rahn, the co-founder of Bitcoin considered this as a huge success “because Bitcoin ATMs are sparsely located and Bitcoin exchanges make withdrawal a burdensome affair. We are vastly increasing liquidity and convenience for holders of Bitcoin.

It’s true that the spread of Bitcoin is limited. There are many debit card users, who don’t use Bitcoin. But they are gradually learning the use of Bitcoin because of the advantages that come with it. The chief advantage is that less time needed for transaction. Bitcoin could reduce the duration of transaction from few days to few seconds.

One problem of Bitcoin is converting the digital currency into local currency. But as the Cryptex card will be usable in a number of countries, users would be able to overcome this problem. Users can load their debit cards from the Bitcoin wallet. After that they could visit any retail shop that accepts debit card and purchase any product or service with their local currency as local ATM or merchant point of sale software would allow that.

Thus, we could see the whole way of sending money to be changed in few years.

Sources 

http://blogs.wsj.com/moneybeat/2014/04/07/cryptexs-debit-card-aims-to-widen-bitcoiners-spending-options/

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