Spending bitcoin or other digital currencies in day-to-day life is not straightforward as traders prefer to avoid the volatile nature of digital currencies. To link the traditional financial system to the new age of digital assets such as Bitcoin, a Swiss-based cryptocurrency startup, Eidoo, has launched a new DeFi-enabled crypto card that uses stablecoins for fiat-to-crypto conversions.
The new De-Fi enabled crypto card was approved for operation by the major payment company, Visa. In addition, the card, dubbed the Eidoo Card, will now enable more than 40 million Visa merchants to accept crypto payments from fiat currencies such as the UK Pound and Euro.
DeFi-enabled crypto cards to facilitate cryptocurrency payments
The CEO of Eidoo, Thomas Bertani noted that the latest confirmation by the payment giants is a part of his firm’s collaboration with Contis, which holds a UK’s e-money license and a principal member of Visa Europe. According to Bertani, the payment giants verified all cards to be issued by Contis and UK-based financial services firm Moneyfold.
Meanwhile, Contis will act as the issuing firm of the Eidoo Cards same way cards like Monolith work. Meanwhile, Moneyfold’s stablecoins based on the Ethereum blockchain, Moneyfold Euro and Moneyfold GBP, will open up a greater deal of transparency and decentralization while converting between fiat and crypto.
“People have a given crypto token, they sell it for the stablecoin via DeFi DEXes like Uniswap. Then the regulated stablecoin obtained from there is topped up with a 1:1 exchange rate; (1 Moneyfold EUR = 1 EUR) on the crypto card when the payment occurs,” Bertani explained.
Decentralizing debit cards
Moreover, the co-founder and CEO of Moneyfold, Nikola Tchouparov highlighted the special nature Eidoo Card which is stablecoin-based. “It will be the first time the back-end of a crypto card is done via stablecoins and DEXes,” Tchouparov stated.
Furthermore, Eidoo users are required to stake or burn their EDO holdings before pre-ordering the Eidoo Card. EDO is the native token of Eidoo platform. The terms state that a user should burn 100 EDO tokens to get the card or stake 25,000 EDO tokens.