Virtual Currency: Bitcoin Payment Card Soon Available?

• According to rumours, a Bitcoin international debit/credit card could soon be proposed. Bitcoins is decentralised virtual currencies: for online use only, they could only apply to online purchases based on a prepaid account and could not be used in stores.

• BitInstant, service focussing on transferring funds between Bitcoin and governmental currencies in transactional contexts, announces that a payment card is to be launched in a short while to enable the use of Bitcoins in the physical world.

• According to BitInstant, a large-scale bank could be issuing these cards intended for the international market. They would cost 10 dollars and would imply a 1% fee for top-ups. They may also bear a QR code and a printed address for funding.

Source: Coding In My Sleep

• This non-official announcement comes as a surprise as Bitcoins, believed to be feeding parallel illegitimate business models, are still fiercely criticised. In reaction to its assumed part in this matter, MasterCard denies all contribution.

• If correct this evolution would again highlight the decay of the virtual/real frontier in the payment sector. Proposed in 2009, Bitcoins enabled its users to purchase goods anonymously but they are especially targeted by fraudsters. In compliance with legal requirements in force in most countries, payment cards generally have to allow for its holder’s identification: this might act as a deterrent to some potential users.

• Last July, the Android app Bitcoin Wallet was launched for Bitcoins-based m-payments, thus pinpointing ambitions turned to real world face-to-face exchanges.