Eidoo, the Swiss DeFi startup, has introduced a new Visa crypto debit card that uses regulated stablecoins for crypto-to-fiat conversion in order to build a bridge between traditional finance and emergent assets like Bitcoin.
On May 25, it has been reported that Eidoo Card has been approved for operation by Visa, as its new card will enable 40 million Visa merchants to accept crypto-derived fiat currencies, including the British pound (GBP) and euro (EUR).
However, Thomas Bertani, the CEO of Eidoo, said that this latest approval by Visa is a part of Eidoo’s partnership with Contis, a principal member of Visa Europe and a holder of a UK e-money license.
Did you hear… Eidoo Card will be powered by the global #VISA network! 💳💫🌎 Time to lock in the best #crypto #cashback and be rewarded when you spend around the world 💌#DeFiOnDemandhttps://t.co/yOLSwSJBcT pic.twitter.com/Jqw1MZYdK2 — Eidoo [Non-giver of ETH or other crypto] (@eidoo_io) May 25, 2020
Bertani said that Visa has approved the entire flow of Contis-led card issuance as well as crypto-to-fiat conversion involving regulated stablecoins issued by Moneyfold, a UK-based financial services firm focused on fiat-pegged stablecoins.
It has been analyzed that Contis acts as the issuer of the Eidoo Card, similar to how other crypto cards like Monolith operate.
New DeFi-enabled crypto debit card to enable Visa merchants to accept Bitcoin and Ether via conversions into regulated EUR and GBP stablecoins https://t.co/mdBo162XXU — Cointelegraph (@Cointelegraph) May 25, 2020
In the meantime, Moneyfold’s Ethereum-based stablecoins, Moneyfold Euro and Moneyfold GBP are planned to unlock a higher degree of decentralization and transparency in the process of converting between crypto and fiat.
Bertani explained:
“People have a given crypto token, they sell it for the stablecoin via DeFi DEXes like Uniswap. Then the regulated stablecoin obtained from there is topped up with a 1:1 exchange rate (1 Moneyfold EUR = 1 EUR) on the crypto card when the payment occurs.”
Likewise, Nikola Tchouparov, the co-founder and CEO at Moneyfold, emphasized the unique stablecoin-based nature of Eidoo’s crypto debit card:
“It will be the first time the backend of a crypto card is done via stablecoins and DEXes.”
As per the report, in order to pre-order an Eidoo Card, users need to stake or burn Eidoo’s native EDO token, as depending on the plan, an Eidoo Card requires that the user burn 100 EDO tokens or stake 25,000.
As of press time, EDO is trading at $0.26 according to data from Coin360.
Thus, Bertani said that users have already pre-ordered more than 2,700 cards, with more than 3 million EDO tokens staked to date.
Source: Cointelegraph | Image: Medium