Crypto Cards in 2024: Fad or Future?

Crypto Cards in 2024: Still Worth It? Insights from the Experts

Crypto Cards in 2024 – The cryptocurrency industry has long offered a multitude of payment cards featuring benefits like cashback and interest. As new crypto cards are actively introduced, one may wonder what’s next for crypto cards and what will keep them relevant in 2024.

Practical Use of Digital Assets

According to Sergej Kotliar, CEO and founder of the crypto payment firm Bitrefill, cryptocurrency cards will remain relevant in 2024 as they provide a practical way for people to use their digital assets in everyday life.

“Users can spend their Bitcoin, Ether, or stablecoins as fiat, which addresses significant issues for individuals without access to world currencies,” Kotliar told Cointelegraph.

The spending functionality helps users save on exchange fees, combat inflation, and use their Bitcoin while traveling without worrying about foreign exchange, he added. Kotliar pointed out that the variety of crypto cards — including those offered by exchanges like Bitrefill and Bitwala — highlights their adaptability to different user needs and preferences.

“These cards simplify the process of spending cryptocurrencies by converting them into fiat at the point of sale, making them a convenient tool for crypto enthusiasts.”

Advancements with Lightning Network and Technology

According to Kotliar, the future of crypto cards looks promising with key potential advancements on the horizon. One such advancement is integrating the Lightning Network, a Bitcoin scalability solution built on top of the main BTC network.

“Integration with more advanced technologies like the Lightning Network could offer faster and cheaper transactions,” Kotliar said.

Other potential developments on crypto cards could include enhanced security features, broader acceptance at merchants, and the ability to support multiple cryptocurrencies on a single card.

The trend toward decentralized finance integration, allowing users to earn interest or rewards directly through their card, could also become a significant vector of growth,

Kotliar

Integration with Self-Custody Wallets

Another key feature of new cryptocurrency cards is integration with self-custodial wallets, or wallets that allow users to store crypto without relying on any third party.

“The Bitrefill card continues to operate with its self-custodial wallet, allowing users to hold and store their BTC securely,” Kotliar said, adding that users can transfer the amount to the card whenever they want to spend their Bitcoin.

“These cards typically work by linking the user’s self-custodial wallet directly to the card, allowing for real-time conversion of crypto to fiat currency,” the CEO stated.

According to Wirex co-founder Pavel Matveev, adopting self-custodial — also known as non-custodial — solutions will bring cryptocurrency cards to the next milestone. “As users demand greater control over their digital assets, non-custodial cards are becoming increasingly popular. These cards enable users to spend their cryptocurrencies without relinquishing control to third-party custodians,” Matveev told Cointelegraph.

Regulatory Compliance Challenges

Crypto cards’ high promises face significant challenges related to regulatory compliance across jurisdictions due to different regulatory requirements and laws.

For example, some governments, like Indonesia, do not allow consumers to pay with crypto, significantly restricting adoption levels.

Among other challenges, Bitrefill’s Kotliar mentioned security concerns related to fraud and theft, and volatility in cryptocurrency prices, which can affect user experience and trust.

The new card is available to all users in the European Economic Area. Lightning is still under development and will be ready soon,

Kotliar

FAQ: The Future of Crypto Cards in 2024

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