Cryptocurrency Prepaid Cards

There’s been some chatter about @Bitpay’s new prepaid Mastercard letting you move from crypto to point of sale payments. That’s great for some people. There’s a few cards like this.

Just for information’s sake, all cards like this go through an intermediary bank.

BitPay — Welcome to the future of payments (their tag not mine)

Anytime you sign up for a card that has Visa/Mastercard/AmEx/Discover/Etc logo on it, it runs through another bank.

‘Not my bank!’ you say? Well read those terms and conditions. You now have another bank. In Bitpay’s case it’s Metropolitan Commercial Bank.

I’m not saying anything about Metropolitan Commercial Bank, Bitpay, or Mastercard. I’ve done business with a couple of these companies and they serve an important purpose to many people.

I just think it’s important to think about how money gets from one account to another.

I’m not 100% sure, but I’m guessing Bitpay does an exchange from crypto to fiat, then the bank and MC and the merchant all do the rest of the tx in fiat.

Then again, there are reports that Metropolitan CB takes crypto deposits, so maybe not.

Crypto Firm Deposits Jump 24% in Q1 at Metropolitan Commercial Bank — CoinDesk

Fun fact, Metropolitan Commercial Bank is also @Coinbase’s bank. Seems like they are a crypto-friendly institution. They have about $3.3 Billion in assets, which is generally a midsized bank in the US.

Thanks for reading Andy’s Room Temp Takes. 😐