Cryptocurrencies such as the ever-famous Bitcoin have a key issue when it comes to day-to-day spending. Primarily, the problem comes from the cryptocurrency’s volatility, which causes retailers to shy away from it due to the risk of losing incredible amounts of money.
Eidoo, a crypto startup based in Switzerland, has a plan, however, and aims to bridge the gap between these emerging assets and traditional finance. Eidoo will do this through the introduction of a new form of Visa crypto debit card, one that leverages regulated stablecoins in order to facilitate conversion from crypto to fiat.
Visa Approval Via Contis
The card, aptly named the Eido Card, has been approved for operation by Visa, the global payment giant. The news itself was announced on the 25th of May, and Eidoo told the press that this new card would enable more than 40 million Visa merchants to accept crypto-derived fiat currencies. This includes the Euro (EUR), as well as the British Pound (GBP).
Thomas Bertani, the CEO of Eidoo, stated that the latest approval from Visa stands as part of the Swiss firm’s Contis Partnership. Contis, in turn, stands as a principal member of Visa Europe and holds an e-money license from the UK.
Bertani explained that Contis had the entire flow of card issuance and crypto-fiat conversion that involved regulated stablecoins from Moneyfold approved by Visa, which means Eidoo is supported by extent. Moneyfold stands as a financial services firm based in the UK and focuses on fiat-pegged stablecoins, primarily.
Pegging Stablecoins To Fiats
What this means is Eidoo Card managed to get its Visa approval through Contis acting as an issuer, which is similar to how other forms of crypto cards operate, such as Monolith. Moneyfold, in the meantime, is planning to unlock a higher degree of transparency and decentralization when it comes to the conversion process crypto-to-fiat. This is in regards to its stablecoins it issues, based on Ethereum, such as Moneyfold GBP and Moneyfold Euro.
Bertani explained the process of how it works. He stated that people have a crypto token of some sort, which they sell for stablecoins through DEXes such as Uniswap. Then, they are capable of using that regulated stablecoin, using a 1:1 exchange rate on the crypto card when payment occurs.
First Of Its Kind
Nikola Tchouparov stands as the CEO and co-founder of Moneyfold. He emphasized the unique nature of Eidoo’s stablecoin-based crypto debit cards. He stated that this is the first time a backend of a crypto card has been done through the process of DEXes and stablecoins.
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