30 July 2016
Find out more

BitInstant confirms Bitcoin card plans

23 August 2012  |  7901 views  |  0 golden egg

Virtual currency transfer provider BitInstant has confirmed that it intends to launch a Bitcoin debit card within the next two months, despite MasterCard recently denying its involvement in the project.

Details of the plans first emerged on Sunday when the Coding In My Sleep site published the transcript of a chat involving BitInstant co-founder Charlie Shrem.

Shrem revealed that he is working with one unnamed domestic bank and one international on the branded 'Paycard' that users could load up with Bitcoins and then withdraw real world currencies.

Each card would include a QR code on the front and a printed address on the back which would be used to load Bitcoins, with BitInstant charging a one per cent fee. The first 1000 cards would be given away free with all subsequent ones costing $10.

During the chat, Shrem posted a mock-up image of the card which featured the MasterCard logo, prompting the latter to issue a statement distancing itself from the plans.

"MasterCard has no relationship with BitInstant. There are issuers who allow the conversion of Bitcoins to US dollars and other currencies, delivered on prepaid cards. However, we're not aware of this particular programme from BitInstant."

Now, BitInstant has posted its own statement confirming the card is set to launch within two months and explaining the MasterCard confusion: "This is because formal negotiations are in progress with the MasterCard affiliate partners prior to full MasterCard submission.

"BitInstant's partners, who are issuing the card, have been working with MasterCard for many years, and the specific relationship will be between these partners and MasterCard (not directly between MasterCard and BitInstant)."

The statement also seeks to allay any KYC and AML-related fears about a card associated with a virtual currency that counts anonymity as one of its major selling points: "These will not be "anonymous" debit cards, but rather a highly convenient means for verified customers to spend Bitcoin value around the world."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Users sue Bitcoin exchange over $460k in missing funds

Users sue Bitcoin exchange over $460k in missing funds

13 August 2012  |  7025 views  |  0 comments
Bitcoin exchange loses $90,000 in virtual currency hack

Bitcoin exchange loses $90,000 in virtual currency hack

14 May 2012  |  8819 views  |  0 comments
Bitcoin exchange TradeHill sues Dwolla

Bitcoin exchange TradeHill sues Dwolla

07 March 2012  |  7463 views  |  0 comments
Paxum ditches Bitcoin as Tradehill exchange shuts down

Paxum ditches Bitcoin as Tradehill exchange shuts down

20 February 2012  |  9263 views  |  0 comments
Bitcoin POS system developed

Bitcoin POS system developed

21 October 2011  |  12394 views  |  0 comments
Exchange lets users pay cash for Bitcoin at bank branches

Exchange lets users pay cash for Bitcoin at bank branches

22 August 2011  |  12376 views  |  0 comments
US customs agents turn away Bitcoin-dependant visitor

US customs agents turn away Bitcoin-dependant visitor

27 July 2011  |  10961 views  |  0 comments
Phoney Bitcoins caused MT Gox virtual currency crash

Phoney Bitcoins caused MT Gox virtual currency crash

05 July 2011  |  11545 views  |  1 comments
Bitcoin value crashes after exchange compromised

Bitcoin value crashes after exchange compromised

20 June 2011  |  18748 views  |  0 comments
US senators voice fears over Bitcoin link to online drugs market

US senators voice fears over Bitcoin link to online drugs market

09 June 2011  |  7551 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Find out moreVisit www.abe-eba.euVisit capgemini.com

Who is commenting?

Top topics

Most viewed Most shared
Groupe BPCE agrees to buy FidorGroupe BPCE agrees to buy Fidor
7965 views comments | 36 tweets | 52 linkedin
Telefonica Germany launches Fidor-backed mobile banking serviceTelefonica Germany launches Fidor-backed m...
7055 views comments | 16 tweets | 22 linkedin
hands typing furiouslyManaging Big Data After Brexit
6673 views 0 | 6 tweets | 8 linkedin
hands typing furiouslyBank of Pikachu? What does Pokemon Go mean...
5695 views 0 | 11 tweets | 9 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job