How do encryption cards work?

What are these credit cards that rely on an account that is fueled with cryptocurrency? Can we use it everywhere? How is it different from traditional credit cards?

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[EN VIDÉO] Cryptocurrencies, how do they work?
Like Bitcoin, there are more than 6000 cryptocurrencies in the world today. These coins are based on blockchain technology.

It is commonly considered that cryptocurrencies will be used above all for speculation. However, the primary benefit of the currency is to be able to pay and purchase goods. What about encryption? For years, many sites have accepted bitcoin payments, including Expedia, Subway, Twitch, or Microsoft. and sure bars Or stores accept this type of payment – the list of French brands is regularly updated on this page: What is less well known is that there are crypto cards similar to the usual credit cards.

The demand for crypto cards came from users of the exchange platform Queen Piece who wanted to use their assets in everyday life. In order to respond to this request, Queen Piece So I launched a card in the UK in April 2019. Then in June 2019, this card was made available in the US, France, Spain, Italy, Ireland, Germany, Holland…) Now, there are a lot of providers that offer these crypto cards: Binance, Curve, and Crypto. com and CryptoPay…

Crypto cards are accepted at almost all points of sale

Similar to the classic card, the crypto card is accepted at almost all points of sale in the world. It also allows you to withdraw Euros from any ATM. It can also be used for payments mobile phones (apple Pay, The Google Pay). The main difference is that the account related to the encrypted card, rather than being provided in euros, is in a currency like Ethereum, BitcoinBNB, CRO and other avatars.

How does this work in practice? Let’s say you walk into a bookstore, select some books, and head to the checkout page. Let’s say you made a purchase of 100 euros.

You take the card given to you by Binance from your pocket to make the payment. You insert it into the device and type your PIN code. a the flow 0.03 ETH (Ethereum) made into your Binance account – the equivalent of €100 at the time of this writing. Binance converts this amount from 0.03 ETH to 100 EUR, which is paid to the trader through processing encryption. Note that other crypto cards, in particular those of, work in the “prepaid” mode: it is necessary to top up your balance in euros in advance by selling cryptocurrencies in advance.

Visa and MasterCard support

There is one factor that is able to reassure users of an encrypted card: they are backed by Visa or Mastercard. It just so happened that these institutions want to support the transformation Digital Financial Services. Visa also announced that within 1Verse Semester 2021, expenses incurred via The value of crypto cards backed by its brand has reached $1 billion.

Advantages of an encrypted card

What are the advantages of owning a crypto card instead of a classic card? First, management costs are significantly reduced. Transaction reliability is very high, due to the fact that the underlying technology (the famous blockchain) very safe.

but that is not all. Some crypto cards come with bonuses or rewards, including cashback on purchases. At as at Binance, this cash can go up to 8% if you are willing to “immobilize”, i.e. keep a certain amount in your account. This cashback was donated to Cryptocurrency Thus it helps to grow your portfolio with every purchase. For example, Binance rewards the user with a balance in BNB (his currency).

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