Great to Hold, Difficult to Spend – The Cryptocurrency Conundrum Is Real
Originally published on: CCN
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May 17, 2018
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We are witnessing a spring when it comes to cryptocurrencies. More and more people are discovering digital currencies, with exchanges adding more than 100,000 users per day in some cases. Yet, the one thing that every crypto user knows is that the use of cryptocurrency at the till requires some ingenuity. It is not that these currencies will never emerge as a cash replacement; rather, it is just that it is challenging to use them as cold hard cash as of today. Tim Draper, who is known to be an early investor in successful ventures such as Hotmail and Skype as well as Tesla, told Forbes, “In five years, you are going to try to go buy coffee with fiat currency and they’re going to laugh at you because you’re not using crypto.”
There have been attempts to solve the usability problems of cryptocurrencies, either through the way of directly trying to accept cryptocurrencies or by the usage of legacy methods such as debit cards. Yet there have been some serious stumbling blocks and obstacles when it comes to acceptability. A comprehensive payment solution by FuzeX is now on the horizon, which encompasses cryptocurrency, credit, debit and reward accounts and provides a one card fits all solution and experience to users.
The masterkey of payments
As consumers get more payment options, the burden of carrying diverse set of cards and remembering different PINs and passwords is also on the paying public. FuzeX aims to simplify that conundrum. They have arrived with a solution that is both informative and enabling via combination of major payment methods: a card that is coupled with an e-paper display that shows relevant payment information, such as QR codes and exchange rates for cryptocurrencies. There is a possibility of storing up to 15 cryptocurrency accounts, and it plans to include credit, debit and reward cards in the future. The card has features like two-factor authentication, loss prevention and on-card key to make transactions more secure and safe. FuzeX card also comes with an EMV chip, that means transactions can be secured by PIN. The physical features of the card include a rechargeable battery, physical buttons and a magnetic strip. The accompanying FuzeX wallet allows for registration and is a gateway into the FuzeX ecosystem. The wallet app even allows for tracking of the card in case it is lost by showing the last location. Users can send, receive and exchange cryptocurrencies by using the wallet. They are also able to check their balances, account history and glance at exchange rates. The app will be available for both Android and iOS devices.
At the backend, FuzeX exchange will enable transactions between fiat, cryptocurrency and amongst themselves. Merchants would be able to receive fiat in local or major world currencies, while users would be able to pay in crypto of their choice. Currently, FuzeX is partnering with existing exchanges and issuers for that purpose. Over time, they have plans and vision to build their own exchange.
The alternatives offer precious little
FuzeX are filling the void in a market, which has been created by the non-existence of similar options. Others have attempted to bridge the gap in the past as well but the success has been limited. In January 2018, TenX have had issues surrounding their card intermediary Wavecrest. Wavecrest was dropped by Visa as a partner and required to close all Visa cards immediately. Other major cryptocurrency cards that were impacted include Bitwala, Cryptopay and Wirex. This has effectively left a gaping hole in this payment industry sector. Monaco is promising a visa card but there is still no working product. Some of the touted alternatives are even worse with Centra’s two co-founders Sam Sharma and Robert Farkas arrested on basis of a complaint filed by the Securities and Exchange Commission. Further, even though the Centra ICO potentially raised US $32 mln on the premise of a virtual currency exchange and a virtual currency debit card, the New York Times reports, “The S.E.C. said in its complaint that the Centra team had never received approval from Visa and Mastercard and had misled investors on several other counts. The S.E.C. said that several of the executives listed on the Centra website were fictitious.”
Legality and Compliance are paramount
Consumers have faced unnecessary hardship when it comes to solution for utilizing cryptocurrency as a means of payment. FuzeX have thus taken a serious look at compliance and hired in-house counsels to advise them on legal issues. They have also just hired a Chief Compliance Officer to oversee these matters. They have engaged the services of a Singaporean law firm and are in the process of hiring more law firms to smoothen out any legal issues in various jurisdictions. A successful token sale event has already been completed and they have reached their hard cap of 40,000 ETH. During the private and pre-sale, each event respectively raised 20,000 ETH. Listing of the FXT tokens that were sold in the sale just began May 10, 2018 and would be carried out on reputable exchanges such as livecoin.net, Coss.io, HitBTC and Cobinhood. FuzeX have their task cut out for them as crypto users need a way to be able to use digital currencies in their daily lives.