Cryptocurrency cards allow users to pay for purchases in cryptocurrency, even if the merchant does not accept payment in this way. The card instantly converts the cryptocurrency into fiat money — that’s the advantage of this tool.
1) Do you think the introduction and use of cryptocurrency cards (especially in Russia) is appropriate at all?
Cryptocurrencies, or credit/debit cards based on cryptocurrency payments, are one of the newest and fastest-growing payment instruments. Wherever people use cryptocurrency, the introduction of cryptocurrency cards is advisable. Switching to cryptocurrencies will give users more independence in terms of cryptocurrency transactions.
In Russia, there are a lot of different ways to top-up accounts and pay cashless. For example, QIWI and Yandex Money, but these companies have high fees and do not work with cryptocurrency, which means additional costs for transferring funds from cryptocurrencies to fiat currency, and vice versa. Cryptocurrencies would cover all user needs for transfers and transactions, both fiat and cryptocurrency. In Europe, for example, such services already exist — the reusable cards from Crypto.com and the Bitexcard one-time use cards can be noted.
2) How secure are cryptocurrency cards? Is the identity verification procedure (KYC) sufficient to ensure the safety of personal data and funds?
When you go through KYC, you come out of a grey area of anonymity, but KYC prevents individuals from sanctioned countries and market participants with dubious reputations from entering the market, eliminating the risk for others to obtain potentially problematic assets. Cryptocurrency cards will be as secure to use as debit bank cards — users are essentially subject to the same security checks.
The data itself is stored on secure servers. Of course, leaks cannot be ruled out, but they do occur at popular banks.
3) There is an opinion that the time for cryptocurrency cards has not come yet, as many countries are just forming a legal framework for cryptocurrencies. Plus, few financial institutions around the world handle digital assets, which significantly limits the possibilities and geographical reach of cryptocurrency cards. Do you agree with this position or do you have a different opinion on this?
Of course, the cryptocurrency industry is developing at a different pace in each country. Not so long ago, there were no cryptocurrencies at all; restructuring the financial structure is not a minute affair. Some countries can already use cryptocurrencies and some will be able to in the near future. For example, El Salvador fully legalised cryptocurrency payments and therefore cryptocurrencies in June. But there are also countries where cryptocurrency is completely banned, such as Turkey.
Banks and government authorities are massively reluctant to see cryptocurrency become the main payment instrument, because then the leverage of power over citizens would be greatly reduced. Nevertheless, cryptocurrency payments are adding more and more online merchants, which only contributes to
4) What advantages and disadvantages of using cryptocurrency cards can you identify. Pros and cons of cryptocurrency cards for holders
The main pros are that the card can potentially be accepted anywhere in the world where Visa or MasterCard is available to pay, which is pretty much everywhere. You can use different currencies and make transactions without waiting — everything happens in seconds.
The big disadvantage of cryptocurrencies is that the fee on any transactions will be higher than if you use a regular bank card. There aren’t many partner banks that support cryptocurrency payments; there are far more risks for them than practical benefits. You also have to go through KYC, which I think is a very big disadvantage, because anonymity is one of the main perks of using cryptocurrencies.
