ZenGo, a mobile app to handle your cryptocurrencies, will introduce a Visa debit card in the U.S. This isn’t the first crypto-powered debit card– Coinbase revealed a U.S. growth for its debit card simply lastweek. ZenGo is a non-custodial wallet, which implies that you’re in control of your crypto assets. Someone might log in to your account and send your possessions to other wallets when you leave your crypto assets on an exchange. Sure, there are some security features, such as e-mail recognition and two-factor authentication. You’re basically relying on the security group of your preferred exchange.
ZenGo and other non-custodial wallets put you in charge of security. You’re acting as your own crypto bank. It makes it more complicated to create a debit card as ZenGo can’t send out and convert cryptocurrencies for you.
ZenGo is joining Visa’s Fintech Fast lane program with the objective to release its payment card in early 2021. While the card will initially launch in the U.S. only, the start-up currently plans to launch it in other countries.
As ZenGo has no idea what cryptocurrencies you own, you’ll have to transform your crypto to USD first. In the mobile app, you’ll be able to transform some funds to fiat (such as USD) and deposit that amount on your card. If you plan to use your card regularly, you’ll be able to convert a fixed quantity weekly.
Compared to other crypto-powered cards, there’s an extra conversion step. “The problem if you do it instantly like Coinbase is that you can’t choose which crypto you want to utilize for costs. They decide for you or they require you to make a choice as soon as for all your transactions,” ZenGo co-founder and CEO Ouriel Ohayon informed me.
Additionally, anything that remains in your ZenGo wallet can’t be utilized with your card. Even if your card is compromised, your crypto possessions stay safe.
ZenGo already lets you acquire cryptocurrencies in the app through partnerships with MoonPay and Coinmama. Thanks to the debit card, the startup will have both on-ramps and off-ramps with assistance for fiat-to-crypto and crypto-to-fiat conversions.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.