Bybit, a crypto exchange solutions provider is partnering with Mastercard in a new venture. This venture will allow users to make payments and withdraw cash using cryptocurrency.
The scheme operates on the Mastercard network that allows fiat-based transactions. Fiat-currency is a term commonly used to refer to any legal tender issued by the government and whose strength depends on supply and demand as well as the stability of the government issuing it. Examples of fiat currencies include US dollars, Euros, pounds or any other currency issued by any government. Different from the fiat system, this scheme debits your cryptocurrency wallet balance to pay for goods and services.
This scheme will comprise of two use cases explained below:
In the first use case, Bybit will release a virtual debit card whose use will be paying for goods and services offered online.
The second use case is the release of a physical debit card for use at certain terminals for instance ATMs for use during cash withdrawals.
Bybit plans to release both of these cards in April this year.
For the start the scheme will support a few of the established crypto coins including BTC(bitcoin), Ether, Tether, USD Coin and XRP. This scheme works by automatically converting balances on crypto wallets into the users preferred fiat currency. This conversion will also vary depending on the persons country of residence.
Moorland, a London-based payments solutions provider is set to issue these cards.
Users will open a Bybit account that supports ATM withdrawals and global payments while limiting transactions to the balance of cryptocurrency holdings in the users’ accounts.
The Dubai-based crypto exchange, recently announced its plans to halt US Dollar bank transfers due to service outages by one of its processing partners. Days after making this announcement, Bybit is now set to roll out its virtual and physical debit cards.
This comes even as Mastercard announces it is holding back its roll out of direct alliances with cryptocurrency and blockchain solutions providers.
Could this be a welcome respite for the ailing financial system based on fiat currencies. One thing is certain though. This scheme can solve the currency outages witnessed in the fiat currency transaction systems and bring about efficiency in the way in which e-commerce is run.
