Collateral announced users could register for a new Collateral Pay card
By Joy Dumasia
The Collateral team announced that users would register for their new Collateral Pay Debit Card later this month. The debit card, which instantly collateralizes Cryptocurrency for a Fiat currency loan, gives customers the ability to pay for goods or services at the point of sale anywhere in the world, without actually spending their crypto.
While crypto debit cards have been around for years, they all suffer from the identical drawback; users have to spend their precious coins. As crypto tends to appreciate over time in contrast to the eroding value of Fiat currency, the HODL (or “buy and hold”) strategy has become deeply entrenched within the crypto community. To the average crypto users, lending temporary Fiat for payment purposes against their long-term crypto holdings is far more rational – and this is what the Collateral Pay Debit Card enables.
How Does it Work?
1. A customer chooses a product or service to purchase from any retailer worldwide and pays with their Collateral Pay Debit Card.
2. Instantly, the Collateral Pay Debit Card integrates with the Collateral Pay Wallet where the Cryptocurrency is held. The crypto is collateralized against a Fiat payment made to the retailer and is secured in a fully-audited smart contract.
3. The retailer receives Fiat currency.
4. The customer decides when to pay back the Fiat debt; there are no time constraints.
5. Payments are made in Cryptocurrency, or a Stablecoin, directly to the smart contract to release the Cryptocurrency back into the Collateral Pay Wallet.
Chris Longden, Collateral CEO, commented: “It’s very challenging to spend Cryptocurrency at the point of sale. We’ve discovered that our target audience doesn’t always wish to spend their Cryptocurrency, as they either see it as a long-term investment or believe in its potential as the decentralized future of money. Customers would often prefer to hold onto their valuable digital assets, and Collateral Pay allows them to do that by offering an easy solution which instantly leverages Cryptocurrency against Fiat to make day-to-day purchases.”
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