Can Crypto Cards Replace Traditional Debit Cards?
Updated: Dec 22, 2021
Every new concept has a period of adaptation by society before its use is popularised and optimized that benefits all parties concerned.
Bank cards were no exception and people also had to go through a learning — and acceptance — curve.
In fact, their beginnings were undoubtedly discouraging. In 1958 the Bank of America introduced some 60,000 cards in Fresno, California, to encourage the use of cards for payment. These cards were not actually traditional debit cards as they were intended to extend credit among the population. Diners Club had already tested the idea, but the initiative was the first large-scale experiment. It went wrong due to misuse and the inadequate technical resources available at the time, but it was a valuable experience to assess the problems that disruptive ideas can present.
Leaving aside the credit component, traditional debit cards use only funds that the user already has to make payments. In the absence of any financial product associated with this basic use, the debit card becomes primarily a proof of identity that can be checked against the bank account holder.
This is the principle used by the eidooCARD. By depositing funds on your Loopring account, you make money available in different cryptocurrencies to pay for the expenses you make with the crypto card. In this way, the card becomes a substitute for your private key signature when making fiat payments at the local shop that does not yet accept cryptos in its business.
It is important to realize what kind of person is a potential user of cryptos, not only now but in the future. Only those who know about crypto finance benefits will be interested in having a crypto debit card.
Cryptos are of interest to people who want to protect themselves against inflation in the short or long term. Then there are investors using cryptos to put their money to work in DeFi products. Also, we find those who use cryptos for their utility role in a service governed by a smart contract. Finally, some have already discovered the ease and savings of using cryptos to send money abroad as remittances.
While these cases cover many types of uses, especially when we add utility tokens, we cannot forget that fiat life continues and hence the conclusion we can reach.
Crypto and fiat will have to coexist; they are useful money in their respective fields. However, traditional debit cards may have to start adapting to this new category of customers who have a rewarding crypto life. Some will be more patient and will continue to have an exchange here, a crypto wallet there, a few DeFi accounts with different websites while they wait for their bank to enable them to have a global view of their finances, fiat or not.
Traditional banking is already falling behind while there are products out there like eidooCARD offering all the usual benefits (crypto cashback, ATM access, payment solution, advanced usage perks).
While some still wait for their bank to react to their new financial life, others already have their eidooCARD.
Are you one of them yet???