Crypto debit cards have been the talk in the crypto-verse for quite some time now. The theory behind a debit card that supports cryptocurrencies, is that you have the convenience of a regular payment card, with funds being sourced directly from your cryptocurrency wallet. At first, we had exchanges such as Spectrocoin issuing physical and virtual cards. But as soon as the crypto boom took off last year, many cards service providers (Visa and Mastercards) simply stopped supporting crypto backed debit cards.
Litepay Is Born
This is where Litepay was meant to be the revolutionary debit card that would send Litecoin (LTC) to the moon by making it the sole cryptocurrency supported by the platform. All a user had to do, was load up some LTC onto the wallet address linked to the card, and use it for regular purchases of goods and services.
But Litepay also experienced the earlier mentioned hurdles of card services providers refusing to work with the project. As a result, it was shut down by the CEO and the Litecoin Foundation back in late March of this year. LTC soon spiraled out of control in the markets. The decline was further accelerated by the general bear market we have been experiencing since February.
FuzeX (FXT) Was Meant to Solve Everything
The FuzeX project was meant to succeed where others had failed in conquering the crypto debit card industry. The whitepaper had described the FuzeX card as follows:
[FuzeX Cards] are smart e-cards that enable users to embed up to 30 credit, debit, or reward cards in one.
The FuzeX Card is identical in size and thickness to a standard credit or debit card and consists of an EMV chip, a dynamic magnetic strip, an E-Paper Display (EPD), three input/option buttons, a rechargeable battery and a charging terminal.
FuzeX Experiencing Banking Hurdles
In their regular bi-weekly update, the team at FuzeX informed the community that the launch of the highly anticipated cards would have to be postponed until further notice. The reason for postponing the launch, was that the project was having difficulty being issued a BIN (Bank Identification Number) by the relevant issuing authorities.
The BIN is usually the first four digits of any debit or credit card, and it identifies the institution issuing the card. This in turn means that if the team at FuzeX is having a hard time being issued a BIN, then the project might suffer a similar fate as that of Litepay.
Perhaps crypto projects are going about it the wrong way by trying to convince traditional card service providers to assist them. We need to remember that these firms are linked to banks and cryptocurrencies are a threat to them. Perhaps the true solution lies in overhauling the entire payment system at retail stores to be compatible with crypto wallets. Using cards is in a sense holding on to the old way of doing things.
What are your thoughts on FuzeX? Will they succeed where Litepay failed? Please let us know in the comment section below.