Growing Interest in Crypto Payment Solutions
Every day, billions of dollars worth of Bitcoin is exchanged. Unfortunately, depending on how you look at it, this Bitcoin is not exchanged for goods and services, but amongst traders with profitable intentions.
Despite the current get-rich-quick mentality, there are countless companies developing products that allow you to spend your cryptocurrencies as originally intended.
Predominantly crypto exchanges who have the infrastructure required to convert crypto into instantly spendable fiat. In recent years, there has been a rushed approach to get card programmes out as quick as possible.
Last year we saw Coinbase, which now has 56 million verified users, release their Coinbase Card. This year, Binance, who is recognised as the world’s largest exchange by volume, released their Binance Card.
Gemini, who are owned by the Winklevoss twins, also recently announced their approaching release of a credit card. The list is endless.
The Problem With Crypto Cards Currently
However, one issue that appears to be arising is the centralised nature of all these companies.
Bitcoin and many of the cryptocurrencies that have followed were designed to be peer-to-peer currencies without any intermediary involvement.
This means payments were intended to occur directly between the consumer and merchant without any 3rd party ever handling the crypto assets. Unfortunately, this requires worldwide retail adoption of crypto which we are still years from.
Currently, all the above solutions rely on a user handing over their crypto into someone else’s (the card providers) possession. Users’ are entrusting a 3rd party with their assets which goes against the values from which crypto originated.
Plutus – A Solution Aligned With Crypto Ethos
However, one crypto card is offering a rare solution during this interim period. A finance app called Plutus, which has been working on a crypto card long before the fad arrived, has developed a few unique features for their crypto card.
Firstly, instead of using the card providers wallet, users can connect any personal cryptocurrency wallet of their choice, such as MetaMask orLedger to the card whilst retaining sole possession of the private keys.
This means the user always maintains full ownership and control of their crypto.
All crypto cards use an exchange to convert the crypto into a spendable fiat before it is accepted by the merchant, however, most crypto cards tend to use a centralised exchange to facilitate these conversions.
Plutus uses a built in decentralised exchange which, again, means the user never has to trust a 3rd party with their crypto.
This may seem like a menial point, after all, you trust banks with custody of your fiat. However, a core value proposition of crypto is escaping the traditional banking system and giving individuals financial independence.
To entrust your crypto with a 3rd party, you are removing the one thing that gives it value.
New $5 Million Backing & International Expansion
Alphabit, a pioneering crypto fund with over $1bn AUM, has recognised the significance of this and signed an agreement committing to a $5m investment in the company’s native token, Pluton (PLU), after seeing staggering growth over the last 3-months.
The new funds put Plutus in a position for rapid international expansion.
Given the current void in the market for a solution such as theirs that bridges CeFi and DeFi, the company has an opportunity to rival the likes of neo-banks such as Revolut and Coinbase who are currently dominating the crypto finance space.