That’s right. One of the most popular crypto asset exchanges in the world, Binance, now supports debit card & credit card payments. So, it seems that while Bitcoin has failed to recover, this nascent industry’s innovators have pushed ahead, as the winds have blown in their sails.
Binance Bares Fangs With New Sponsorship
It may be a mere four weeks into 2019, but Binance has already begun to flex its muscles and bare its fangs. On Thursday morning, the Malta-headquartered company took to Twitter in tandem with Simplex, a crypto-friendly fiat payment servicer, to reveal that its world-renowned trading platform would be accepting credit card and debit card payments.
— Binance (@binance) January 31, 2019
In a Binance-signed blog post pertaining to the matter, this newfangled, potentially revolutionary feature was explained in-depth, with the company’s chief executive even commenting on the matter. CEO Changpeng “CZ” Zhao, a golden child in this tight industry, explained that this Simplex integration is intended to aid Binance’s traders, as it will provide them “fast and easy access to crypto, in the most secure way possible.”
CZ added that this partnership with the aforementioned Israeli payment processor will help “bridge the gap” between the legacy world of global fiat — and the new one of borderless cryptocurrencies and decentralized technologies.
So give me the deets — you might be thinking.
Of course. Through this integration, Binance users will be able to use their Visa or Mastercard debit/credit cards to buy Bitcoin, Ethereum, XRP, and Litecoin… for now. The idea is that users purchase the household name cryptocurrencies, then subsequently use base pairs to trade their credit card-bought holdings for one of the hundreds of altcoins listed on Binance.
Fees are where things get a bit sticky. According to a blog post from Binance Support, purchases will cost the user 3.5% on each transaction, but a flat rate of $10 will be imposed if the transaction doesn’t surpass $285 (or an equivalent amount in another currency).
Yet, the company has maintained that transactions won’t only be convenient (I’m looking at you Coinbase), and fast — a mere ten to thirty minutes on average… apparently.
Binance may have just single-handedly welcomed thousands to the crypto resistance, so to speak, and they may not even know it. Let’s see how this plays out.
Crypto Community Reacts
In response to the news, the crypto community quickly erupted into a clamor of sorts. Joseph Young, a leading crypto journalist, noted that as credit cards are clearly more dominant that cryptocurrencies, this fiat on-ramp will ensure more adoption. Others joked that this integration could spark a newfound bull run, especially with small-cap assets. Alex Krüger even joked that this should “amplify the upside” for tokens, while also helping “new bagholders buy tops impulsively.”
Rhythm Trader, now going by Alex Ziupsnys on Twitter, noted that the fiat flow “has turned from a trickle into a flood,” adding that a majority of the fiat flowing into cryptocurrencies won’t ever be able to leave. Ziupsnys is under the belief that cryptocurrencies will rapidly overtake fiat, just like Max Keiser (and me).
This recent addition comes just days after Binance launched a crypto-to-crypto over-the-counter desk. And just weeks after the company launched a fiat-accepted exchange in Jersey, sparking interest from thousands of Europeans, which sent the subsidiary’s logistics team into a frenzy. Binance is ready to tackle 2019 head-on, but will its tailwinds provide it any success?
Title Image Courtesy of Marco Verch Via Flickr