Xapo Introduces Debit Card Linked to Your Bitcoin Wallet
Bitcoins have taken another small step toward mainstream acceptance.
Bitcoin users can now use the first-ever Bitcoin debit card to pay for everyday purchases. The card is being offered by Xapo, a crypto coin storage vault.
When using the card to make a purchase, Xapo sells a corresponding amount of Bitcoins from your wallet to cover the transaction.
At the moment, the Bitcoin credit card is not equipped with the ability to withdraw money from the ATM, but it would seem to only be a matter of time before this takes place.
Users can get a card number for free when using Xapo wallet, paired to a Bitcoin account. If you would like to get an actual card, there is a magnetic strip version that costs $15. The merchant covers the traditional processing fees.
When the card is used to make a cash purchase, Xapo uses Bitstamp to sell the Bitcoins for a flat fee and convert them into cash money. There are no extra steps needed on the user’s end. Since most people only keep about 10% of their Bitcoins in their wallets, this card may allow them to bring their Bitcoins wherever they go.
This product follows the launch of Prepaid Bitcoin, a prepaid card service that allows users to put cash in their accounts that converts into BTCs.
“Technically this is simple, it’s the permission and banking relationships that are complex. Xapo is ambitious and can execute,” said Adam Levine, editor in chief of Let’s Talk Bitcoin.