The latest technological innovation in the world of bitcoin could propel the digital currency to new heights, and a greater enemy in major financial institutions and electronic payment system providers.
Cryptex is the very first global bitcoin-to-cash ATM-debit card that allows users to easily convert their bitcoins into cash, according to a press release. The card is accepted in more than 80 countries, 90 percent of ATMs in the United States, more than 50,000 ATMs in Japan and millions of merchants’ point-of-sales (POS) across the globe, even if they do not permit bitcoin payments.
Interested parties can apply for a card online and once approved the Hong Kong-based startup will ship the cards within four to six weeks. At the present time, the card only holds U.S. dollars. In the U.S., there will likely be spending limits and it could take an entire day for bitcoin to be converted into cash with Cryptex.
Once the customer receives the card, they can reload it online. The reloading process takes 24 hours but the primary goal for the company is to reduce that to less than one minute by summer. When an active account balance is available then it would operate as any other prepaid debit card and each transaction will be immediately withdrawn because the funds are in cash.
The company, which is financially supported by an array of international technology investors, does not charge shipping or fees – separate, independent ATM fees apply – but it will earn a profit by charging the exchange rate above the cost of dollars it buys on bitcoin exchanges.
Critics say, though, that it would be cheaper for bitcoiners to sell their virtual currency holdings on the market and receive the cash back into their bank accounts instead of placing it on a card.
The latest endeavor was announced at the Inside Bitcoins Conference in New York on Tuesday.
Andy Cheung is a co-founder of Cryptex. He maintains more than 15 years of experience working in the payment solutions systems industry and has been involved in several companies, such as Payment Network International and China Payment Services.
“This is a huge development for Bitcoin because Bitcoin ATMs are sparsely located and Bitcoin exchanges make withdrawal a burdensome affair,” said co-founder Jamon Rahn in a statement. “We are vastly increasing liquidity and convenience for holders of Bitcoin.”
Many have argued that this poses an even greater threat to the financial establishment than previously conceived. This newest card – if it turns out to be successful – has been described as a “gateway” between cryptocurrency and the marketplace. With one simple swipe of a card, a consumer can purchase groceries, movie tickets or clothing with their bitcoins instead of waiting for a merchant to accept bitcoin or take the time to convert bitcoins into dollars.
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