Fintech

Swiss Government Rejects $103 Million Bailout for Crypto Companies Battered by Coronavirus

26/05/2020 by Idelto Editor

Switzerland’s government has rejected a 100 million franc ($103 million) bailout for local cryptocurrency companies battered by the coronavirus economy, local media reported.

Zug finance director Heinz Taennler requested the special funding package in April. He planned to issue out loans to startups, which could be converted into shares.

The central government had already unveiled a $158.6 million credit facility for all fintech startups, but Taennler felt that won’t be enough for the cryptocurrency sector’s ambitious financing needs.

Zug is the heartbeat of Switzerland’s famed crypto industry, commonly known as the “Crypto Valley.”

Now, members of the Zug local government last week turned down Taennler’s funding request, the only such request to be rejected from over 24 different applications for coronavirus emergency funding, according to a report by local newspaper Tages-Anzeiger.

The majority of the government officials were reportedly not too enthused about the future of the crypto industry.

However, the Zug finance director announced a loan facility of about $15.4 million on May 25, which is now expected to provide temporary relief to emerging businesses in Crypto Valley. The report said more than 66% of cryptocurrency and blockchain companies that applied for broader central government loan guarantees failed to get them.

“Taennler wanted to help blockchain start-ups shaken by the corona crisis with a sovereign wealth fund. But his government colleagues reject this,” said the newspaper report.

The once-flourishing Swiss cryptocurrency industry is struggling to survive following the withdrawal of private equity investors.

About 80% of 203 firms surveyed by the Swiss Blockchain Federation recently warned of imminent bankruptcy. Only half of the 50 biggest companies in Crypto Valley expect to last a year in business.

While startups are generally threatened by the Covid-19 impact on the economy, Cypto Valley’s loss of venture capital constitutes an underlying condition.

A mid-2019 analysis of the 50 top companies valued them at $40 billion, which was two times their value at the beginning of the year. The report also listed six unicorns. As a whole, the “Crypto Valley” had more than 800 companies with over 4,000 employees.

What do you think of the Swiss government turning down Crypto Valley’s funding request? Let us know in the comments section below.

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1.2 Million Italians Can Now Buy Bitcoin From Their Bank

21/03/2020 by Idelto Editor

Buying bitcoin just got easier for Italians. The country’s mobile bank Hype has announced a partnership with fintech startup Conio, enabling customers to buy, sell, and securely store BTC from within their banking app. With over a million Italians choosing to bank with Hype, and 60,000 new customers being onboarded each week, the challenger bank’s decision to offer bitcoin is significant.

Also read: Onchain Data Suggests Bitcoin Sell-Off Fueled by New Investors

Believe the Hype

Launched in 2015 by Italian bank Banca Sella, Hype reflects the growing trend towards digital-first challenger banks which cater predominantly to millennials. By linking up with Conio, Hype’s mobile platform saves customers the trouble of using cryptocurrency exchanges to buy bitcoin. Instead, they can purchase the digital currency in-app, without the need for extra verification requirements.

When it comes to bitcoin storage, Milan-based Conio utilizes a multi-key solution, with three keys for each wallet. Because two are necessary to authorize transactions, with one stored on the user’s device, another on Conio’s servers, and a third kept offline by Hype, customers can maintain control over their funds and regain access if they lose their device.

Giving the Customer What They Want

The wallet integration is the result of demand for bitcoin among Hype’s customers, according to CEO Antonio Valitutti: “Over 13% of our customers demanded bitcoin. We heard them, and we did our best to bring them the best solution: that’s why we chose Conio. We are very happy with our partnership, which also demonstrates the pioneering spirit of Hype.”

Christian Miccoli, Conio co-founder and CEO, added, “We are thrilled by this result. It shows that banks must not be afraid of cryptocurrencies, but can instead embrace them and make this sector grow in the future.”

1.2 Million Italians Can Now Buy Bitcoin From Their Bank — The homepage of Conio’s website.

By normalizing BTC and exposing 1.2 million customers to crypto, Hype could play a key role in advancing bitcoin’s cause in the region. Customers will be able to directly use their account balance to buy bitcoin, with a daily purchase limit of €500 and an annual limit of €2,500 for Hype Start accounts. Premium accounts, meanwhile, can buy up to €4,990 per day or €50,000 per year, with the bank claiming a 1% fee for every purchase and sale.

Corona Carnage and a Way Forward for Bitcoin

Italy has been the worst-hit nation amid the covid-19 outbreak, with its death toll overtaking China’s on March 19 and all citizens on lockdown. At the time of writing, 4,032 people have perished from the virus there, with the total number of cases exceeding 41,000.

Last week, the Italian Red Cross and blockchain startup Helperbit announced that they were raising donations in bitcoin and other cryptocurrencies, with the intention of establishing a second-level advanced medical post for pre-triage of covid-19 cases. So far, the appeal has raised over $17,000. While a mere drop in the ocean given the government’s announcement of a €3.6 billion stimulus package, it indicates that the country is marshaling whatever resources it can to counter the virus.

As central banks desperately inflate the money supply to shore up a flagging economy, the appeal of fixed supply assets such as bitcoin is heightened. As well as being able to buy and sell bitcoin, Hype customers can use their card to pay for goods and services anywhere BTC is accepted. With citizens currently urged to avoid cash payments to prevent spreading the virus via contaminated notes, bitcoin may prove to be a valuable alternative, particularly as a hedge against rising inflation.

Do you think bitcoin will prove its worth as a hedge against inflation? Let us know in the comments section below.

Images courtesy of Shutterstock.

Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry.

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13 Crypto Debit Cards You Can Use Right Now

28/02/2020 by Idelto Editor

If cryptocurrency is designed to reconstruct the financial world while introducing major improvements in transaction speed, privacy, cost and convenience, debit cards represent a useful bridge between old and new. A preponderance of crypto debit card options now exist that allow cryptocurrency to be exchanged for spendable fiat currency at the touch of a button. Let’s take a look at a baker’s dozen of them.

Also read: How to Get Free Bitcoin in 2020

European Crypto Debit Cards

Plutus is one of the longest running crypto card services, having pitched up in 2015. The London startup has its own loyalty token (PLU) which is awarded to users every time they use their debit card. Notably, though, it’s a noncustodial platform which lets users retain control of their private keys. Usable in almost 200 countries, the card can be topped up using GBP or EUR, with ETH and PLU the only supported cryptos at the current time. Plutus also doubles as a virtual bank account, which is offered to residents anywhere in the European Economic Area (EEA) region for free.

Wirex is another popular option for Europeans. Founded in 2014, the London fintech firm was the first to release a contactless, multi-currency Visa card and boasts over three million customers in 130 countries, having processed $2 billion worth of transactions. Wirex’s slick light-green debit card supports conversion from several major cryptos, has a native built-in utility token (WXT), and gives users 0.5% BTC on in-store purchases through its Cryptoback program, rising to 1.5% if you hold 500,000 WXT tokens. There’s a modest card account maintenance fee of £1.00/€1.20/$1.50, with all other fees and limits broken down here. Having achieved success throughout Europe and the APAC region, Wirex intends to expand into Canada, Japan and the U.S. in 2020.

Monolith is a noncustodial option that allows ETH and ethereum-based tokens to be stored in its mobile wallet before being converted and spent on the Monolith Visa card. Billed as a “decentralized bank,” Monolith is closely aligned with the defi movement that has come to define Ethereum. DEX integration will be added soon, together with support for the Ethereum Name Service.

Since 2017, UK digital bank Revolut has let users from the EEA buy, hold and exchange crypto, with the possibility of instantly exchanging any of 30 fiat currencies directly into bitcoin, litecoin, ethereum, bitcoin cash and XRP (and vice-versa). Revolut takes a flat 1.5% cut but it’s possible to transfer crypto to other Revolut members in seconds without paying a fee. Buy goods in-store or online using the Revolut debit card or app; if you only have crypto in your account, Revolut will exchange it into fiat in the retailer’s local currency at the point of purchase. Cryptocurrencies are only available on Revolut’s paid plans: it’s £6.99 a month for a Premium card and £12.99 for a Metal one.

Cryptopay is one of the original bitcoin payment cards, and offers a plastic prepaid card (for ATM withdrawals and offline shopping, $15) and a virtual equivalent (online, $2.50). Available in the U.K., Russia and soon to be available in Singapore, Cryptopay supports only bitcoin alongside fiat currencies GBP, USD and EUR. For a breakdown of the relevant fees for both cards, see here.

It’s fair to say Europe is one of the best regions for those wishing to use crypto-fiat debit cards; in addition to the aforementioned options, there are cards from Bitnovo, Coinbase, Uquid (89 cryptos supported) and 2gether.

North American Crypto Debit Cards

With support for BTC, ETH, XRP, GUSD, USDC, PAX and BCH, Bitpay’s debit card remains one of the best options for U.S. residents. In fact, it’s available to U.S. citizens only. The card costs $9.95 and can be topped up using eight fiat currencies from the Bitpay wallet, then used anywhere that accepts Visa. Bitpay’s currency conversion fee stands at 3% of the transaction, and a $3 charge is due every time you use an ATM outside the U.S. Transaction limits are set at $10,000 a day and you can’t withdraw any more than $1,500 a day or $5,000 a month.

Wirex is planning to launch in the U.S. in the next month, however, meaning that American citizens will soon have another way to exchange their cryptocurrency for fiat.

Global Crypto Debit Cards

Singapore-based financial platform Paycent claims to have onboarded 94,000 customers to its crypto-fiat debit card since it launched in April 2018. While initially supporting only bitcoin, Payment now offers a wide range of cryptos – ETH, BNB, LTC, XRP and DASH included – and represents a global solution, accepted by 36 million merchants in 200 countries. With Paycent cards, you can convert your virtual currency into fiat then spend it online or in physical stores; you can also withdraw cash in the local tender at ATMs throughout the world.

Three Paycent cards are available: Ruby, powered by China Union Pay, has a daily spending/withdrawal limit of $5,000; Sapphire, powered by Union Pay International, has a daily spending limit of $5,600 and a withdrawal limit of $1,650; and Solitaire, powered by Mastercard, carries a daily spending limit of $13,000 and a withdrawal cap of $10,000. Each card costs $49, and while Ruby has no monthly fee, the other two cost $2 per month.

Launched in 2019, Crypterium‘s card lets you spend crypto at over 50 million merchants in 178 countries, as well as withdraw in fiat from 2.5 million ATMs. If you’re too impatient to wait for the plastic, you can get started with a virtual equivalent in a few minutes. The card is priced at $9.99 and there are no monthly fees unless you jump onto a Plus or Premium plan, where benefits include higher crypto-to-fiat transaction limit, priority support, a savings account, insurance and even a personal manager. Supported cryptos at present are bitcoin, ethereum, litecoin and the native CRPT token, with transaction limits set at $10,000 (daily) and $60,000 (monthly).

Crypto.com’s MCO Visa card (formerly the Monaco Card) is quasi-global, in the sense that it’s available in the U.S., Europe and Singapore. Five different cards are available, with MCO rewards paid in a tiered fashion (1-5%) on every purchase. Disappointingly, even the top-tier card has a monthly ATM withdrawal limit of $1,000.

Crypto debit cards make the process of spending digital assets easier. After all, no one wants to jump through hoops selling their bitcoin on an exchange to fund lunch or coffee. If you want to use your tokens for everyday purchases, get yourself a debit card and start spending those satoshis.

Which crypto debit cards do you recommend? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock.

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In Response to Bitcoin, Central Bank of Brazil Presents Instant Payment System Pix

21/02/2020 by Idelto Editor

Banco Central do Brasil has started testing a new payment network with the promise to offer Brazilians near instant transactions and many new services. Portrayed as a response to Bitcoin, the Pix system will be mandatory for major financial institutions to ensure wide coverage. The project aims to limit the use of paper money and plastic cards to reduce the costs of the national financial system.

Also read: Tax Rules Hit Brazilian Crypto Exchanges, Forcing Trading Platforms Out of Business

Pix to Transfer Money Between Users Within Seconds

Brazil’s new electronic payment system was officially launched during an event at the BCB headquarters in Brasília on Wednesday, Feb. 19. Pix was initially announced in the spring of 2019 but its name was revealed last week by the central bank’s president Roberto Campos Neto who shared details about the system. During an interview with the Brazilian TV channel Globo News, Campos Neto explained:

Instant payment means that you will be able to pay between one person and another, 24 hours a day, seven days a week.

The money will be transferred immediately to the recipient’s account, the banker emphasized. The system will operate automatically through an application that will also support QR code scanning. Brazilians will be able to use it to pay government fees as well thanks to the participation of the National Treasury. Tests began with the launch and will continue throughout the next nine months. Officials hope to open the network to the public on Nov. 16, Portal do Bitcoin reported. Mass adoption is a target for 2021.

According to preliminary estimates, the time Pix is going to need to process a transaction should be less than 10 seconds. However, most financial transfers through the Brazilian instant payment system are expected to occur much faster, within around two seconds, according to the BCB Financial System Director João Manoel Pinho de Mello.

The instant payment system developed by the Central Bank of Brazil comes as an institutional response to the challenges presented by decentralized cryptocurrencies. “This is one of the most important projects that we have this year. The world demands a payment instrument that is cheap, fast, transparent and secure,” commented the bank’s president. “If we think in terms of bitcoin and cryptocurrencies, they are born out of these needs, these characteristics. And Pix is our answer to these systems,” Campos Neto noted.

Major Banks and Payment Processors Obliged to Join In

In order to achieve compliance and wide coverage, BCB has decided to impose mandatory participation in Pix for all major banks as well as other financial and payment processing institutions that have over 500,000 accounts. Around 30 organizations managing more than 90% of all active accounts in Brazil will be integrated, including the country’s five major banks, Bradesco, Itaú, Banco do Brasil, Caixa Econômica Federal, and Santander, and the digital banks Inter, Original and Nubank.

Institutions that are not authorized by the Central Bank, such as cryptocurrency exchanges, may be allowed to join Pix “indirectly.” Under current regulations, digital asset trading platforms are not considered financial or payment institutions in the traditional sense. Brazil is yet to adopt dedicated legislation for the crypto space and their activities are still regulated only under a ‘normative instruction’ issued by Secretaria da Receita Federal do Brasil, the country’s revenue service. As news.Bitcoin.com reported, three crypto bills are still under deliberation in the National Congress.

Banco Central do Brasil has gradually softened its position on cryptocurrencies and the industry built around them. A couple of years ago, under its former president Ilan Goldfajn, the Brazilian monetary authority initially viewed decentralized digital assets as a “typical bubble” and a “pyramid.” Later, Goldfajn toned down the criticism and described bitcoin as merely a “risky asset.” His successor, Campos Neto, vowed to leave space for the advancement of new financial technologies and prepare the central bank for the accelerated transformations that will form the future market. Along with Pix, Open Banking is another initiative launched by his administration. It envisages deeper integration between traditional banks and fintech platforms.

Do you expect Pix to become a successful instant payment system? Share your thoughts on the subject in the comments section below.

Images courtesy of Shutterstock.

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Digital Remittances Reach Record High of $96 Billion, Fees Charged by Traditional Providers Open Door for Cryptocurrencies

14/02/2020 by Idelto Editor

In a globalized world where labor follows capital, the remittance industry has been growing constantly in both volume and users. Traditional providers like banks and money transfer companies have been charging high fees for their services which creates opportunities for alternative digital platforms and decentralized cryptocurrencies.

Also read: Russians Can Use Qiwi, Sberbank, Yandex Money and Now Binance P2P Exchange to Buy Bitcoin With Rubles

Digital Remittance Volume Projected to Touch $143 Billion by 2023

According to numbers gathered by market data provider Statista, the total transaction value of digital remittances, cross-border transfers made over the internet, has reached almost $95.96 billion in 2020, representing a year-over-year increase of more than 21%. At the same time, the number of users in this segment of the remittance market has been estimated at 8.5 million (+20.5% yoy). Both indicators are projected to increase by 2023, to over $143 billion in volume and 13.2 million users.

Last year, the largest share of users (32%) were between 25 and 34 years old, and another 25% were aged 35-44 years, a majority from labor-active age groups. The average annual transaction value per user in the digital remittances segment amounts to a little over $11,233 according to the data released this year. Five countries, United States, Switzerland, Saudi Arabia, Germany, and China, top the transaction value comparison chart. With a total transaction value of $21.297 billion, the U.S. is the pronounced global leader and Switzerland comes in second with $7.969 billion.

Total transaction value in the digital remittances segment, Source: Statista — Global comparison, transaction value. Source: Statista

The authors of the report note that remittances often occur on a regular basis and most of the user groups are not inclined to change their fund transfer provider very often. The sector is dominated by established service providers such as banks, post offices and money transfer processors like Western Union and Moneygram. The relatively high fees they charge has opened the way for alternative platforms such as Transferwise, Worldremit and Remitly, Statista points out, which have managed to cut costs by optimizing the use of digital infrastructures.

Ripple’s Latest Remittance Service Agreements Turn the Tide for XRP

While there have been various developments around XRP recently, some of them have influenced its market in a positive way. Two partnerships have been announced this month in which Ripple, the company associated with the cryptocurrency, will be providing remittance services. The price of XRP, the third largest cryptocurrency by market capitalization, spiked over the past couple of days, from a low of $0.2678 on Feb. 11 to a high of $0.3288 early on Feb. 13. Although the crypto lost some of the gains later on Thursday, the price jump is remarkable as it comes after a difficult year for one of the top coins.

According to media reports this week, the National Bank of Egypt (NBE), the country’s largest financial institution by assets and branches, has signed a cooperation agreement with Ripple to open a new channel for receiving remittances from Egyptians that live and work abroad. The bank said it wanted to employ Ripple’s blockchain solutions to further develop its remittance business supporting transfers from around the world and particularly the Gulf region.

The Egyptian deal follows another similar agreement announced by Ripple earlier in February. The company revealed it’s going to work with International Money Express (Intermex), a leading remittance services provider focusing on Latin America and the Caribbean corridor, to address the challenges with slow and expensive cross-border payments. Intermex plans to leverage Ripplenet for faster remittances between the United States and Mexico. Ripple claims the network links over 300 banks and financial institutions globally.

According to the World Bank, Mexico ranks third among countries with the highest number of remittance recipients. Data published by Banco de México, the nation’s central bank, shows that Mexican emigrants have sent home a record $36 billion in 2019, a 7% increase over the previous year’s almost $33.7 billion. Most of the money, a large portion of which comes from the U.S., has been transferred electronically and in small transactions averaging around $300. Intermex is one of the largest money remitters between the two countries processing more than $30 million in transactions annually.

The status quo in the digital segment of the remittance market undoubtedly creates opportunities for decentralized cryptocurrencies as well. Transaction fees in the case of bitcoin cash (BCH), for example, are less than a cent per transfer. Certain regions can benefit significantly – a 2019 report by the World Bank revealed that the average cost to send the equivalent of $200 to Sub-Saharan Africa is 9.3% of the transferred value, as news.Bitcoin.com reported last year. In 2018, African expatriates sent $46 billion to their home countries.

What are your expectations about the future of the remittance industry? Share your thoughts in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock, Statista.

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