Bitcoin vault and security company, Xapo, has announced the next step in Bitcoin’s integration with the mainstream. Users can now link credit cards to their Xapo bitcoin wallets.
Bitcoin Wallet Liked Credit Card
CEO of Xapo, Wences Casares, explained:
“Most of our customers keep 90% of their bitcoin in our vault and 10% in their wallet.”
The card will allow 10% of a user’s funds to be exchanged into cash. The card will be free for users, complete with a card number, expiration date, and allow access for online transactions. A physical version of the card, consisting of a magastripe, can be requested for a $15 fee. It can be used in any location that accepts MasterCard.
Europeans will have the option to obtain PIN and chip cards.
When a client uses their Xapo card, the vault company searches to make sure there are sufficient funds. Bitstamp is then brought into the equation to sell the bitcoin for fiat to pay the vendor. Like traditional credit card transactions, vendors pay fees while customers don’t.
Though ATM withdrawal functionality is not yet ready, Casares is confident that it will be in the near future. He says:
“We were surprised with the reaction in the market. When we started Xapo a wall of coins came our way. It’s was a really positive reaction.”
The user base Xapo is targeting their cards to are those who have few bitcoins and aren’t spending them, as well as those who refuse to deal with an exchange company.
Casares assured that his company will never transition into an exchange. Anyone that wants to try out the new credit card service can sign up to create a new wallet and simply request one.
In an interview discussing bitcoin’s potential, Casares said that he believes 1 Bitcoin has the potential to be worth up to $1 million within 10 years.
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Image via Xapo