Bybit crypto exchange has announced the launch of a new debit card that will allow users to make payments and withdraw cash using their cryptocurrency holdings.
This innovative service is set to operate on the Mastercard network and will enable fiat-based transactions by debiting cryptocurrency balances when used to pay for goods and services.
The Bybit card is set to debut with a free virtual card for online purchases, while physical debit cards will be available in April 2023.
The service will work with a variety of cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), and XRP balances on user accounts.
Payments will automatically convert the balances of these initial cryptocurrencies into euros or pounds, depending on a user’s country of residence.
ATM withdrawals and global payments will be limited to aggregated cryptocurrency holdings of a user’s Bybit account. The cards are issued by London-based payments solutions provider Moorwand.
The roll-out of Bybit’s virtual and physical debit card offering comes days after the Dubai-based exchange announced it would be halting U.S. dollar bank transfers.
The suspension of dollar deposits and withdrawals was pinned on “service outages” by one of its processing partners.
Bybit users can continue to make USD deposits using Advcash Wallet and credit cards. Still, users are urged to carry out any pending U.S. dollar wire withdrawals by March 10.
United States-based crypto exchanges and businesses were affected when Silvergate Bank announced the discontinuation of its digital assets payment network on March 4.
It is worth noting that Mastercard and Visa had reportedly delayed announcing or embarking on further direct partnerships with the cryptocurrency and blockchain industry.
Despite this, Bybit’s introduction of a Mastercard-powered debit card is a significant step forward in facilitating the use of cryptocurrencies for everyday transactions.