A Singapore-based startup has developed a product that could make it easier for people to use bitcoin (BTC) and other cryptocurrencies in everyday life.
According to a report by Bloomberg, Singapore-based company TenX has introduced its own Visa card, which it claims is an instant converter of multiple digital currencies into fiat money, such as dollars, euros and yen. The company said that it takes two percent from each transaction, adding that it had already received orders for more than 10,000 cards. According to the report, transactions are capped at $2,000 per year, but users can apply to increase that limit if they undergo identity verification procedures.
Due to their extreme price volatility, cryptocurrencies have yet to be recognised as a viable medium of exchange for everyday purchases. TenX’s solution to this problem comes in the form of a mobile application that serves as a digital wallet connected to the Visa card. That way when the card is swiped at a cafe or restaurant, the merchant is paid local currency and the user’s crypto account is debited.
“You’re mixing two worlds that are night and day,” TenX’s co-founder Julian Hosp said, as quoted by Bloomberg. “When the user spends the cryptocurrency, we have to instantly switch these currencies to fiat and pay to Visa straight away. It’s a lot of pathways.”
At the moment TenX’s card supports eight digital currencies and has plans to increase that number to 11 by the end of the year. The company currently processes about $100,000 of transactions a month, but it is aiming to reach $100 million in monthly transactions and a million users by the end of next year.
According to Mati Greenspan, analyst at social trading platform eToro, TenX’s solution is an “incredible concept” and the Singapore-based startup has an advantage in moving early in that space. However, he also told Bloomberg that the startup can expect competition from major financial institutions and venture capitalists with deeper pockets and direct access to clients and databases.
Last month TenX successfully completed an initial coin offering, raising $80 million in the sale. About half of the capital would be used to expand the company’s operations, while the rest provide liquidity for a cryptocurrency exchange that’s being developed, Hosp explained.
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