What Are They?
You have probably seen bitcoin cards or crypto cards and have wondered “can I use bitcoin with my Visa or Mastercard to purchase items?” The answer is kind of. Let’s explain.
Crypto debit cards in their current form allow those that hold cryptocurrency to sell the cryptocurrency for fiat currency (fiat currency is a currency issued by a government, like the
Philippine Peso, the US Dollar, or the Malaysian Ringgit). Once crypto is sold, you can immediately transfer the proceeds to your prepaid debit card. In most cases, the prepaid
debit card will have an e-wallet and funds can move to the card for spending and back to the e-wallet to purchase more cryptocurrency. It is a very convenient way for those holding crypto to turn that crypto into fiat rapidly.
The cardholder can then withdraw funds from an ATM, make a purchase online using their Visa or Mastercard, or make a transfer of funds to their bank account or to another bank account. The transfer of funds depends upon the issuer of the card.
Why Do I Need One?
Crypto debit cards are designed for active holders of cryptocurrency that need liquidity. This is important for poker players that participate in tournaments internationally online or need to travel.
For example, you have entered an international tournament and you place in the tournament. Your payout is in crypto. Now that you have the crypto, how do you convert it into fiat?
This is where most poker players run into issues.
Payment Speed (Time)
If you happen to sell it on an exchange, the exchange can take anywhere from 24 hours to five days to send the crypto to your bank. Five days is a long time, and we all know
how crypto is volatile. If the crypto increased in value while you were waiting, that is not a good feeling. (You would feel lucky if the crypto fell, however.)
If you had a crypto debit card, you could immediately sell the crypto and place the funds on your card for immediate use.
Limits
Here is where we see most problems in converting crypto to fiat. Banks and payment providers in the Philippines and throughout Asia flag payments that exceed limits
especially when limits exceed 500,000 PHP. At best, you will have to contact the bank, provide documentation and the funds will be released. Worst case, your funds will be held
for a long period of time while the documentation and decision is rendered. If you plan to use the proceeds immediately, good luck.
Flexibility
Having multiple methods to transfer funds and to receive payments provides you with opportunities that others cannot participate in. The good thing about crypto debit cards
is their ability to be used online across a variety of platforms. Banks that issue cards may block certain providers online and transactions. While this security measure is designed
to protect consumers from fraud, this security measure with a traditional bank may prohibit you from entering tournaments online.
Who Provides Them?
The infographic below outlines all the major crypto debit card issuers in Asia. Each provider has different price points, limits, and payment speeds. Our latest research shows
three different providers in Asia. Pokercast Asia will review each of these providers and will provide information on the pros and cons of each provider. Stay tuned for our review.
How Can I Get One?
The three providers that issue cards to Filipinos have application processes that are similar. When you apply, you will have to go through KYC (Know Your Customer) checks. While it sounds intimidating, it is not. After you complete KYC, you will be prompted to follow the payment instructions provided.
If you want to check them out, here is the link.
