PCM Vol.2 - Issue 4

it altogether. To put it simply, Bitcoin’s newness
makes it unfamiliar to many merchants.
So it makes sense to combine Bitcoin with another
payment method with established presence —
the cards network — which also lends a physical
form to bitcoin. The familiarity and the assurance
of the cards infrastructure is the solution towards
wider bitcoin adoption. By linking bitcoin to
the cards network, merchants do not need to
implement any extra and specialised bitcoin
payment processors. They can accept it within
the existing credit card payment system.
This is not a perfect solution. It does nothing for
bitcoin visibility. However in terms of ease of use,
simplicity, and acceptance, taking advantage of
the existent infrastructure for cards is the best
and most cost-effective method for increasing
bitcoin adoption and usage.
The four big advantages of the bitcoin debit
card
the two at any given time.
Fourthly, and perhaps the most important
advantage of all, is that the cards network
make bitcoin spending significantly easier for
both seller and buyer. Merchants do not need
to add extra steps in order to include bitcoin
payment processors, and bitcoin users do not
need to limit themselves to the small number of
bitcoin-accepting merchants (just 100,000 out of
millions).
It can be argued that this relatively new product
is the next step in Bitcoin evolution, as a currency
is only as good as its payment infrastructure.
Where bitcoin payment processors have failed,
the card network helps Bitcoin to adapt to the
current system and be more user-friendly.
Without this step, Bitcoin could face a slow death
into obscurity, limited to usage by early adopters,
and never making it to the mainstream public.
The future of Bitcoin is the cards network
As a payment method, bitcoin debit cards hold
multiple advantages over fiat currencies and
even traditional bank-issued cards. For one, the
cards are linked to Visa or MasterCard, which
means that they offer the benefit of almost
universal acceptance at online and offline shops
and ATMs. This is in contrast to fiat currencies,
where you can’t use one country’s currency in
another country, despite both technically being
recognised as money.
Secondly, bitcoin debit cards offer more freedom,
as they are not tied to banks, which can block
users’ cards at anytime. For this reason, bitcoin
debit cards have been called ‘the best companion
of the tourists’. Additionally, beyond being a travel
accessory, bitcoin’s non-attachment to banks
also means that card providers have to ensure
the best possible digital security for their users.
The added security — multisig technology, twofactor
authentication, email confirmations, pins,
and other security features — make it almost
impossible for funds to be stolen.
As the world gets more globalised, so do her
inhabitants. There is high demand for a global
money like bitcoin. It is secure, accessible to
the underbanked and unbanked, cloud-based,
and allows fast and affordable remittances
without geographical limitations. As smartphone
ownership has become commonplace in
developed countries, and increasingly in
developing countries, companies like Wirex
offer a complete banking platform that requires
nothing more than a smartphone and a debit
card.
Given this demand, the future of bitcoin
integration into the cards infrastructure looks
bright. Applied together with mobile banking
infrastructure, it will disrupt the financial industry
as we know it.
The third advantage is that bitcoin as a currency
has continued potential to appreciate. It was
the best performing currency in 2015 when its
value increased by 35%. However, this poses a
problem, because the reverse can also be true.
Cryptocurrencies can be volatile. The best way for
users to protect bitcoin’s appreciation potential
while minimising risk is to use 2-way bitcoin
debit cards, which allow on-demand conversion
between bitcoin and fiat. This way, users can
benefit by using the stronger currency between
Wirex is the new and improved hybrid personal banking
solution. We are the first company to combine the speed
and flexibility of blockchain finance with the acceptance
of traditional currency in one account. Additionally,
we integrate secure bitcoin wallets linked to Visa and
MasterCard debit cards with the convenience of mobile
banking.
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