Bitcoin wallet provider Xapo has announced that they will be launching what has been aptly described as an international bitcoin debit card, which will allow users to spend their bitcoins in places where MasterCard is accepted — both online and at physical locations.
The way it works is as you would expect. The card will debit right from the end user’s Xapo hot wallet. Upon initiating a transaction, Xapo will check to see if the the requested amount of money is available in the user account. If it is, they will immediately sell it on Bitstamp, and the merchant receives their local currency.
The California-based company will be making the card available in two forms: physical and digital.
The digital version of the card can be used for online purchases and is free, but the physical version (which you can bring with you as you move about) will come with a one-time fee to cover shipping and handling.
For now, it’s being reported that each account will be allowed one card, though Xapo may allow for more cards to be added to an account in the future (provided that’s an in-demand feature).
Though the card is accepted at locations which accept MasterCard, it does not signify a partnership between the two companies.
It’s a mix of new and old payment methods coming together, and adds a level of convenience for bitcoin enthusiasts not seen before.
Will it catch on? Time will tell.
[textmarker color=”C24000″]Source[/textmarker] CoinDesk