You could pay for anything, anywhere using your digital currency. Such is the promise of the digital currency debit card– a revolutionary that transforms the spending process of digital assets.
Therefore, what is a digital currency debit card? Basically, it is a debit card, connected to your digital wallet, allowing you to do spending as if you’ve got currency such as bitcoin, ethereum, and any other digital currency in a physical store that accepts debit cards.
The concept is still in its pilot phase, but many companies already have begun promoting them. Typically, these cards would be linked to an account, convert digital currency into fiat currency (dollars, euros, etc.) in real-time, thus enabling a person to shop at sites that accept debit cards.
Convenience is another proving ground of digital currency debit cards. In simple terms, the convenience with these cards enables us to make purchases in flesh and not translate our digital currencies into fiat before the actual purchase. This is the critical point to spending on the digital and making them a very fundamental part of the daily life.
Another reason would be to bring about smaller fees. Usually, fees for foreign currency transactions and fees for converting a currency add up quite fast. Lowering these fees, or even eliminating them, is what makes the use of digital currency debit cards much cheaper compared to normal inter-country transfers.
Some challenges have to be surmounted. The biggest challenge is the biggest volatility issue of digital currencies. The value of digital currencies might fluctuate significantly in short periods of time. Thus by using a digital currency debit card, the bearer may be subject to significant price swings that may affect the value at the moment of purchase dramatically dissimilar to the value during final settlement.