The trend towards the creation of debit cards with support for cryptocurrencies is reaching Asia. And it is that, after receiving a strong boost in the West with the launch of Binance Card. Now the largest credit and debit card company in all of China, UnionPay, will support the use of cryptocurrencies in a new virtual debit card. Something that could radically change the landscape for cryptocurrencies in the Asian country.
The boom of crypto cards
Within the crypto world there had always been the intuition that debit cards could be a great advantage for the sector. And, one of the biggest obstacles that the crypto world has faced for its overcrowding, are the long waiting times for the execution of transactions.
This is so, when buying merchandise in traditional commercial establishments, people cannot afford to wait 15 to 30 minutes for a transaction with Bitcoin to be executed. Which makes cryptocurrency unable to compete with the speed of traditional fiat money. Not being adopted as a means of payment but by very few businesses around the world.
Faced with this problem, the main crypto companies have decided to resort to debit cards. Thus, companies like Binance and now UnionPay offer cards which, when passing through a common point of sale, automatically execute the payment. Even though your balance is loaded with cryptocurrencies and not fiat money.
This happens so, when the payment is made, the company behind the card sends fiat money to the company where we are buying. Discounting an equivalent to the fiat money you sent from your account balance in cryptocurrencies. So the merchant does not have to wait for the transaction to be executed on the Blockchain, but instead receives the money in advance from the card company.
UnionPay will support cryptocurrencies
In this way, the Chinese company UnionPay has announced its association with the Korean crypto company Danal, for the creation of a virtual prepaid debit card, which will support cryptocurrencies. As reported in a recent report by the South China Morning Post.
UnionPay partner Danal has already announced that the card will work in 179 countries around the world, including China. And it will be available to users of the Paycoin wallet. With which they will be able to purchase products in more than 30 million merchants that accept payments made with UnionPay cards around the planet.
Currently, Paycoin is one of the most important cryptocurrency wallets in Asia. Being used mainly in Korea, with support in exchanges such as Huobi, UpBit and CoinOne. So its presence in the eastern cryptocurrency market is strong enough to guarantee its success in it.
With the UnionPay move, Chinese citizens would then have more options to use their cryptocurrencies in the country. Well, although the government banned cryptocurrency exchange platforms in China years ago, operations with these assets are still legal.