A press release announces the intention of the Asian giant Binance to introduce a debit card for its users.
Binance’s commercial aggressiveness is well known in the industry, be it ICOs, IEOs, educational platforms or an entire blockchain, anywhere an opportunity arises the company invests.
What has quickly become the most cumbersome reality in the trading world is also positioning itself strongly across other sectors such as payment services.
The user base of the Binance exchange is huge and in the service-related sector, this represents enormous power.
Binance and the values of the blockchain
“It’s as simple as transferring BNB from one wallet to another”.
With these words, the press release focuses on the wallet management systems that will be linked to the debit card application.
“No longer will you need to sell your crypto to pay bills. With the Binance Card, you can keep HODLing, and spend only what you need to make a payment”.
It seems clear, according to the currently available specifications, that the project is connected to the platform and that control of the funds is in the hands of the company.
For the time being, only BTC and BNB will be available for sale on the VISA circuit.
The decision to make the services easy by compromising the decentralization of the financial system is understandable.
Centralizing a system makes it faster, more profitable and the intermediary becomes increasingly dominant.
People forget that cryptocurrencies, through their creation, wanted to liberate themselves from this system.
Payments and cryptocurrencies, the eternal dilemma
This news, combined with the concepts linked to financial disintermediation, brings us back to the long-standing problem of the adoption of cryptocurrencies as a means of exchange.
The sector has not yet made it through as a payment system. None of the blockchains in the race to conquer the market has yet been able to channel its main crypto or representative token as an accepted and adopted means of exchange.
For this reason, debit cards still have an important role, though the path and dynamics with which they are implemented are fundamental.
- Are they connected to a custodial or NON-custodial wallet?
- Are the users able to have full control over their funds?
Two simple questions that many are trying to give answers consistent with the values of financial disintermediation so dear to the industry.
Some services do so, respecting some fundamental principles for the growth of the sector.
When it comes to money, it should be borne in mind that the blockchain environment is still a grey area at the regulatory level. Large exchanges are not entities on which it is possible to rely fully.
The increasingly friendly services they provide risk attracting less aware users to a comfort zone.
Decentralized stablecoins, DeFi, hybrid or decentralized exchanges, non-custodial wallets, these are all services that can be integrated into ecosystems that are at the forefront and aim to achieve the objectives of this technology regardless of short-term interest.
When choosing a service, these principles must be considered, otherwise, it would be like going to hell to look for the archangel Gabriel.