A common challenge when dealing with cryptocurrencies is making the funds available for real world, in-person purchases. The solution usually revolves around using an online exchange to convert altcoins into fiat currency, which a person could then transfer to their traditional bank account.
With digital currencies becoming more popular, there are more ways to spend your money, and not all of them are reserved for online purchases. For example, UQUID offers a VISA prepaid Ethereum debit card. It’s just like any other prepaid debit card, except this one allows you to load it with Ether. UQUID supports 40+ digital currencies, in addition to Ether, to be stored on a debit card in either USD, EUR, or GBP.
The Ethereum debit card allows you to swipe your card at any normal point of sale transaction and withdraw fiat currency from an ATM. There are no fees to deposit Ether, making funding the card economical and painless. UQUID has several options for loading your card via different exchanges. Once loaded, you’re able to spend your Ether value anywhere VISA is accepted.
The UQUID card does have a limit as to how much you can upload, but after providing official identification documentation and a proof of residence, you could upgrade to their limitless card. Though, there are some downsides to making your Ether so easily available. To load the debit card you would need to create a UQUID account. UQUID cards are issued by Wave Crest Holdings Limited, a licensed electronic money institution. By moving your Ether to one of their electronic money accounts, you are relying on that financial institution to remain operational. Should they become insolvent, it’s possible your funds would become valueless and unusable, meaning you’d lose your money. That risk comes from electronic money accounts not being insured unlike a traditional bank account’s FDIC insurance.
With most digital currencies, as long as your private keys remain private, your funds will always remain yours. A user would have to weigh that risk against the benefits of being able to use their digital currency at local businesses and ATMs.