Last week, thousands of European users were left in the lurch when VISA announced the immediate termination of their services to the cryptocurrency-based debit card issuer, WaveCrest. This decision has impacted several cryptocurrency debit card solution providers, as all VISA-based cards were immediately discontinued. Prominent companies, such as Xapo, Bitwala, Bitpay, and TenX, were left with thousands of outraged clients after VISA stopped processing card payments. However, two of the affected companies have conveyed that they have found solutions to the problem.
Last Thursday, VISA revealed their decision to end their relationship with the card issuer, WaveCrest. The cards issued by WaveCrest are a popular tool used by many in the crypto community, as the cards can be used to pay for everyday goods and services. The funds are drawn from the card holder's cryptocurrency holdings.
One of the biggest setbacks of cryptocurrency is the lack of utility in everyday life. While it may be a useful investment, there are limited options available to users who want to use their cryptocurrency holdings as they would fiat currency. However, hybrid cards have become a popular solution that allows users to use the card as a prepaid debit card where they upload a balance prior to use from their cryptocurrency accounts. Users can then spend their cryptocurrency as fiat currency. However, VISA’s latest decision has rendered this smart solution useless, as more than 100,000 Europeans are now incapable of using their cryptocurrency debit cards.
According to the co-founder of TenX, Dr. Julian Hosp, the latest development has affected over 200,000 TenX clients. However, Hosp seemed enthusiastic about finding a solution. Hosp stated that TenX was prepared for this development, especially since the firm recently entered into a new partnership with a different card issuer. TenX has been working to obtain new cards to replace the old, useless cards. In addition, TenX users will be allowed to withdraw any funds from their current accounts this week until all old cards have been replaced.
Hosp appeared in a live Hangout over the past weekend in order to illuminate users and enthusiasts about the situation’s current development. According to Hosp, TenX intends to introduce a new cryptocurrency debit card, and even procure a banking license, in order to create a more optimal fiat currency integration system.
Another cryptocurrency debit card company, Wirex, also experienced a tumultuous aftermath when VISA and WaveCrest ended their relationship. According to Wirex, they are WaveCrest’s largest client, with a userbase of over one million individuals. While a large portion of registered Wirex users don't necessarily subscribe to Wirex’s debit card services, the effects were still dramatic. Around 600,000 users have been left stranded when it comes to accessing their cryptocurrencies.
Surprisingly, Pavel Mateev, CEO of Wirex, does not place the blame of this fallout on VISA, but rather on WaveCrest. In a recent interview, Mateev made his feelings clear when he noted that WaveCrest has been violating VISA's operational policies for a long time. Mateev believes that this incident should have been foreseen.
However, similarly to Hosp, Mateev seems optimistic that a solution is possible. According to Mateev, Wirex is currently in the process of considering their options and will select one of four possible card issuers to partner with moving forward. Mateev stated that Wirex’s process to finding a solution would be relatively simple, as they simply have to choose a different card issuer and replace the old useless cards with new ones for the problem to be solved. While a lot of other companies would have felt the devastating effects of this relationship termination more keenly, and some might even have shut their doors, Wirex is confident that they will find a solution and move forward successfully.
Some crypto enthusiasts still feel that VISA is to blame for a variety of reasons. Some believe that VISA felt threatened by the rapidly growing cryptocurrency industry. However, this argument seems insufficient, considering VISA’s annual payment processing average of 100 billion transactions, especially compared to Bitcoin’s average of 130 million. Despite the growing industry, Bitcoin cannot reasonably be considered a real threat to mainstream financial services providers yet.
Despite this incident, European consumers will likely be able to continue their usual transactions albeit on newly issued cards.
Last Thursday, VISA revealed their decision to end their relationship with the card issuer, WaveCrest. The cards issued by WaveCrest are a popular tool used by many in the crypto community, as the cards can be used to pay for everyday goods and services. The funds are drawn from the card holder's cryptocurrency holdings.
One of the biggest setbacks of cryptocurrency is the lack of utility in everyday life. While it may be a useful investment, there are limited options available to users who want to use their cryptocurrency holdings as they would fiat currency. However, hybrid cards have become a popular solution that allows users to use the card as a prepaid debit card where they upload a balance prior to use from their cryptocurrency accounts. Users can then spend their cryptocurrency as fiat currency. However, VISA’s latest decision has rendered this smart solution useless, as more than 100,000 Europeans are now incapable of using their cryptocurrency debit cards.
According to the co-founder of TenX, Dr. Julian Hosp, the latest development has affected over 200,000 TenX clients. However, Hosp seemed enthusiastic about finding a solution. Hosp stated that TenX was prepared for this development, especially since the firm recently entered into a new partnership with a different card issuer. TenX has been working to obtain new cards to replace the old, useless cards. In addition, TenX users will be allowed to withdraw any funds from their current accounts this week until all old cards have been replaced.
Hosp appeared in a live Hangout over the past weekend in order to illuminate users and enthusiasts about the situation’s current development. According to Hosp, TenX intends to introduce a new cryptocurrency debit card, and even procure a banking license, in order to create a more optimal fiat currency integration system.
Another cryptocurrency debit card company, Wirex, also experienced a tumultuous aftermath when VISA and WaveCrest ended their relationship. According to Wirex, they are WaveCrest’s largest client, with a userbase of over one million individuals. While a large portion of registered Wirex users don't necessarily subscribe to Wirex’s debit card services, the effects were still dramatic. Around 600,000 users have been left stranded when it comes to accessing their cryptocurrencies.
Surprisingly, Pavel Mateev, CEO of Wirex, does not place the blame of this fallout on VISA, but rather on WaveCrest. In a recent interview, Mateev made his feelings clear when he noted that WaveCrest has been violating VISA's operational policies for a long time. Mateev believes that this incident should have been foreseen.
However, similarly to Hosp, Mateev seems optimistic that a solution is possible. According to Mateev, Wirex is currently in the process of considering their options and will select one of four possible card issuers to partner with moving forward. Mateev stated that Wirex’s process to finding a solution would be relatively simple, as they simply have to choose a different card issuer and replace the old useless cards with new ones for the problem to be solved. While a lot of other companies would have felt the devastating effects of this relationship termination more keenly, and some might even have shut their doors, Wirex is confident that they will find a solution and move forward successfully.
Some crypto enthusiasts still feel that VISA is to blame for a variety of reasons. Some believe that VISA felt threatened by the rapidly growing cryptocurrency industry. However, this argument seems insufficient, considering VISA’s annual payment processing average of 100 billion transactions, especially compared to Bitcoin’s average of 130 million. Despite the growing industry, Bitcoin cannot reasonably be considered a real threat to mainstream financial services providers yet.
Despite this incident, European consumers will likely be able to continue their usual transactions albeit on newly issued cards.