According to BitPay announcement, Visa gave direction to Wave Cerst Holdings. They had to terminate accounts of its debit card programs, causing cryptocurrency debit cards providers to suspend their services.
“Yesterday our European BitPay Card issuer Wave Crest Holdings, Ltd. received direction from Visa® to immediately close all accounts of its prepaid Visa® debit card programs.
The BitPay Card (non-US) is one of these programs, along with other cryptocurrency-related and standard prepaid Visa® debit cards. Unfortunately, Wave Crest was unable to provide us or cardholders with more time to prepare for this change.” – BitPay announcement.
BitPay is one of three companies that had to cease their services, as they said in the statement. They will refund any remaining balances (also order fees for those who purchased a card after 1st of December).
Bitwala and Cryptopay also announced on their twitter, that they quit services and refund remaining funds on the cards. Cryptopay and BitPay’s supports already said that they have begun negotiating with another card issuer.
Due to Visa decision addressing WaveCrest, all cards issued by the company were closed. We need to highlight, that decision only affects Europe, and all other regions can still use their crypto-prepaid cards.
This decision has a huge impact on usage cryptocurrencies as a payment method, because even when someone doesn’t accept digital assets as a payment, it wasn’t a problem. Those cards worked like prepaid cards filled with cryptocurrency. The company that issues those cards, converts cryptocurrency to fiat money then transfers it to the seller. Without it, Bitcoin and other Alts can be held as an investment, and their role as “regular currency” is dropping down.
Another change has come to cryptocurrencies, another obstacle thrown under the user’s feet that want to change their investments and payment methods to digital assets.
Last modified: January 10, 2018
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