A multicurrency wallet has announced that it will allow users in the European Union to withdraw Bitcoin to their Visa credit cards.
Lumi Wallet says its new feature has been built with simplicity in mind, with an easy-to-follow Know Your Customer procedure. Transactions can also be initiated quickly, meaning crypto enthusiasts don’t need to jump through endless hoops.
Upending the status quo
According to the company, the current methods of converting crypto to fiat simply aren’t practical — creating a “perplexing affair” that’s not too dissimilar from the arduous process of getting a refund from an online retailer.
Although selling cryptocurrency to someone else might seem like the simplest way to exit a position, Lumi Wallet says this is easier said than done. Finding a willing buyer can be difficult — and even then, the price they’re willing to pay might not be reflective of the asset’s market value. Safety concerns can also emerge if a would-be buyer has dishonest intentions — and, by the time a transaction has been finalized, volatility in the market might mean that your crypto is worth substantially less.
Ultimately, Lumi Wallet’s issue is that middlemen appear to have embedded themselves in the process of buying and selling cryptocurrencies, despite the fact that these assets were invented to be decentralized and free of intermediaries.
When it comes to exchanges, the company says there are several downsides that have a negative impact on consumers. Although they may be easy to use, there are often restrictions that mean certain countries are excluded from using their services altogether — and to compound the problem, it may not be possible to make withdrawals to a credit card whatsoever.
Other issues include the punishingly high fees that can be charged whenever a transaction is made, and the fact that the process of uploading documents to verify your identity can take several days. All of this is before we begin discussing the security concerns surrounding some of the world’s best-known exchanges, with crypto worth millions of dollars being lost through hacking attacks on an alarmingly regular basis.
Alternative options aren’t always too appealing, either. Bitcoin ATMs may deliver speed, anonymity and simplicity, but they can be exceedingly difficult to find — especially if you live outside of the United States or live in a rural area. Even if you’re close to one of these machines, withdrawals can only be made in cash, meaning you’ll then have to go through the added step of topping up your card. Anonymity can also go out the window when crypto is being converted back into fiat on ATMs.
Making crypto less intimidating
The team behind Lumi Wallet says it acknowledges that crypto can be intimidating for newcomers — adding that the goal is to demystify this burgeoning industry and make it accessible for everyone.
Providing an effective offramp from crypto to fiat is part of the company’s philosophy, making it easy for people to alternate between the two as frequently as they please. It could be argued this is crucial for unlocking that elusive milestone of mainstream adoption, as the freedom to move assets around with ease would eliminate some of the reservations that everyday consumers have about cryptocurrency.
Through a dedicated blog, Lumi Wallet has made a concerted effort to offer a back-to-basics education to those who are exploring the blockchain and cryptocurrency space for the first time — offering posts that explain everything from how decentralized finance works to the key distinctions between different types of crypto wallets. All of this could help to build levels of confidence and credibility in the sector, encouraging people to take the plunge and purchase coins and tokens for the first time.
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