ØPay; crypto-credit payments!
Bitcoin, and the underlying blockchain technology, undeniably, is changing the face of global finance by way of its decentralized structure; however, with that said, it is difficult to argue that the space has surpassed its infancy. Many cryptocurrency users often encounter troubling barriers to exit. Very few cryptocurrency platforms offer fiat currency support; accessing the underlying value is becoming a prominent challenge for many cryptocurrency users. In addition, tax implications and associated transaction fees can further-complicate the prospect.
In response, several projects have sought to address such challenges. Debit cards have entered the cryptocurrency market, through which, cryptocurrency positions are immediately liquidated for the underlying fiat value upon offering a transactional payment. However, such payment cards ignores one critical factor — cryptocurrencies are highly volatile assets. Anybody who has ever bought Bitcoin is familiar with the tale of Laszlo Hanyecz and his 10,000BTC costing Papa John’s pizzas!
Nowadays, many market participants purchase cryptocurrencies for prospective capital gains; the sentiment of ‘hodling’ is prime within the community. If cryptocurrency is an investment, then what do we do when we want to use it as a functional currency? Here at Ø, we believe we have solved the conundrum!
By utilizing Lombard credit mechanics, Ø will offer the world’s first crypto credit card! Øpay will offer credit on transactional payments collateralized by a choice of four cryptocurrencies — BTC, ETH, ØDA and ØUR. Simply, send your compatible cryptocurrency to the mobile application’s wallet, and you’re free to spend anywhere, anytime! All with the added benefit of knowing that you do not have to liquidate your position, thereby, avoiding capital gains tax liabilities.
Given the unique mechanics of the card, not only will users of ØPay be able to easily access their cryptocurrency funds in their day-to-day lives, they’ll also enjoy relatively lower conversion rates than a many of the other conventional fiat-based credit cards — from just 0.8%/month of the total amount borrowed!
As the platform grows, we will add support for additional cryptocurrencies which will be chosen by way of communal votes through the DAO. ØPay users will have the option to offset their usage fees by way of holding ØDA or ØUR as collateral, both of which offer dividend returns, conditional to KYC submission.
In addition to cryptocurrency credit, the application will offer debit functionality, whereby transactional payments are funded through instantaneous liquidation of the underlying collateralized assets.
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