Bybit is set to launch a new debit card offering that will allow users to make payments and withdraw cash using their cryptocurrency holdings.
The Bybit card will operate on the Mastercard network and will allow fiat-based transactions with the debit of cryptocurrency balances when used to pay for goods and services. The service starts with the launch of a free virtual card for online purchases, while a physical debit card is set to be available in April 2023.
The service will work with Bitcoin (BTC), Ethereum (ETH), Tether (USDT), USD Coin (USDC) and Ripple (XRP) balances in user accounts. Payments will automatically convert these initial cryptocurrencies balances into euros or pounds, depending on the user’s country of residence.
ATM withdrawals and global payments will be limited to digital currency holdings collected from users’ Bybit accounts. The card is issued by London-based payment solutions provider Moorwand.
Bybit’s offering of virtual and physical debit cards comes days after the Dubai-based exchange announced it would stop US dollar bank transfers. The delay in deposits and withdrawals of dollars was attributed to a ‘service outage’ by one of our processing partners.
Bybit users can continue to make USD deposits using the Advcash Wallet or with a credit card, while users are urged to perform the pending US dollar wire withdrawals on March 10.
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Crypto exchanges and businesses based in the United States were affected when Silvergate Bank announced the shutdown of its digital asset payment network on March 4.
Meanwhile reports at the end of February 2023 indicate that Mastercard and Visa will stop announcing or start further direct partnerships with the cryptocurrency and blockchain industry.
Mastercard has been exploring payment options in USDC through a new partnership while Visa has signaled plans to allow customers to convert cryptocurrencies to fiat on the platform by 2023.