Cryptocurrency exchange Bybit is launching a new debit card that allows users to pay for goods and services using their cryptocurrency holdings. The Bybit card operates on the Mastercard network and will initially support Bitcoin, Ether, Tether, USD Coin, and XRP balances. The card will be available in two forms: a virtual card for online purchases and a physical card for in-store transactions.
ATM withdrawals and global payments will be limited to aggregated cryptocurrency holdings on a user’s Bybit account. The card is set to be available in April 2023, and the service will convert users’ cryptocurrency balances into euros or pounds, depending on their country of residence.
Suspension of Dollar Deposits and Withdrawals
The roll-out of Bybit’s virtual and physical debit card comes after the Dubai-based exchange announced it would halt U.S. dollar bank transfers. Bybit cited “service outages” by one of its processing partners for the suspension of dollar deposits and withdrawals. The company stated that users could continue to make USD deposits using Advcash Wallet and credit cards. However, users were urged to carry out any pending U.S. dollar wire withdrawals by March 10.
Silvergate Bank’s discontinuation of its digital assets payment network on March 4 affected United States-based crypto exchanges and businesses. The move left companies like Bitstamp, Kraken, and Binance without access to the bank’s digital assets payment network.
Also Read: Mastercard and Bitso Launch Crypto Debit Card to Drive Adoption in Mexico
Meanwhile, Mastercard and Visa announced they would hold off on announcing or embarking on further direct partnerships with the cryptocurrency and blockchain industry. Despite this, Mastercard is exploring payment options in USDC through new partnerships, while Visa has hinted at plans to allow customers to convert cryptocurrencies into fiat on its platform in 2023.
Bybit’s new debit card offering allows users to make payments and withdraw cash using their cryptocurrency holdings. The move is expected to boost the adoption of cryptocurrency as a payment method. However, the suspension of dollar deposits and withdrawals by Bybit, as well as Silvergate Bank’s discontinuation of its digital assets payment network, highlights the challenges that crypto exchanges and businesses continue to face. Nevertheless, payment giants like Mastercard and Visa are exploring ways to integrate cryptocurrencies into their platforms, indicating that the adoption of crypto is likely to continue to grow.
