Cryptocurrency has always been seen as an equalizer in the crypto space. It is seen as an alternative to the traditional banking finance system, offering freedom and easy accessibility to anyone with access to the internet.
However, despite crypto growth over the years, crypto payment still faces a significant challenge. Some of these challenges include and not limited to high volatility, complex onboarding, issues with merchant adoption, and little utility, especially in areas where financial inclusion is more needed.
In areas such as Latin America, Africa and Southeast Asia, millions of people remain unbanked and unable to have access to financial financial service, thereby remaining unbanked. Over the years, this challenge is due to unreliable baking infrastructures, inflation, and hidden fees in remittance.
Similarly, the crypto remittance and global issues remain issues with converting digital assets into spendable traditional currencies and issues with intermediaries.
Enter the Avalanche Card – a payment solution and initiative that bridges the gap that exists between digital assets and everyday transactions. This payment solution is one that allows users to spend their digital assets effortlessly by swiping their traditional debit card.
This innovation, which is available as both physical and virtual card, sets out to eliminate the challenges of the unbanked, offering them a secure, borderless and bank-free financial possibility.
What is an Avalanche Card?
Avalanche partnered with Rain to create this revolutionary solution. The card can be used by both crypto enthusiasts or newbies in the crypto space for everyday ise without having to worry about payment related problems.
Commenting on this, President of Ava Labs said:
With the Avalanche Card, your cryptocurrency becomes a tool for empowerment,” he added that “As digital assets gain mainstream adoption, it’s critical to showcase real-world use cases that feel as familiar as swiping a credit card.”
The Avalanche card supports popular crypto assets such as USDC, USDT, AVAX and Wrapped AVAX (wAVAX) and plans to expand its reach to other tokens in the near future.
Challenges of Crypto Payments in Unbanked Regions
The growing adoption of cryptocurrencies in emerging markets comes with its own unique set of challenges, especially when it comes to using digital assets for daily transactions. The following points emphasize the most critical issues that hinder effortless crypto transactions in unbanked areas:
- Deficiency of Merchant Acceptance
While cryptocurrency is a popular asset class, many businesses limit their acceptance to traditional payment methods only. Users are thus compelled to utilize crypto-to-fiat exchanges or P2P platforms, both of which come with conversion fees. Without merchant acceptance, users find it practically impossible to use crypto for the purchase of basic necessities such as groceries, rent, or even getting public transportation.
- Expensive Fees and Off ramping Issues
Users looking to cash out their crypto will find the conversion steps cumbersome and expensive. Numerous payment processors and exchanges have stiff fees on withdrawal, and usually several steps are required, including sending the asset to an exchange, selling it for fiat, withdrawing it to their bank, and then accessing cash. People living in underbanked regions who already have limited access to financial institutions will find this system restricting.
- Unreliable Regulations
The regulations of crypto differ significantly from one country to another, and some governments even ban or impose harsh restrictions on digital assets. For example, In Nigeria, stringent banking measures have made it nearly impossible for users to withdraw or convert their crypto possessions through the aged financial systems.
Such ambiguous legal situations means plunging into uncertainty which businesses would prefer to avoid and hence do not want to accept crypto payment integration.
- Short Supply of Stable Digital Resources
Numerous cryptocurrencies, including Bitcoin and Ethereum, have highly unpredictable prices and cannot be used for typical payments. While some like USDC and USDT stablecoins provide a solution, they are still not available for use in a lot of regions due to policies and restricted on-ramps. Without stable digital currencies, users have significant financial risks when spending crypto.
- Dependency on Banking System
Having a bank account unfortunately has to become a necessity for a user wanting to turn their crypto assets into fiat currency. This stance is ironic because a number of users in underdeveloped regions who want to access crypto have to seek traditional financial institutions to turn crypto riches into cash. Lacking a digital, crypto friendly system leaves the assets idle rendering enabling the users to do anything of use on a daily basis.
How Avalanche Card solves these problems
The Avalanche Card is now able to offer direct spending capabilities, bypassing traditional banking systems, as well as integrating with Visa’s expansive network, all of which allows for smoother transactions.
In this case, investing cryptocurrency can be converted into practically spending it. Here are the ways it helps overcome the most important impediments to using crypto with day-to-day activities:
- Bypassing Banking Restrictions
The Avalanche Card does away with these restrictions as users can now spend and hold cryptocurrency without a bank account. This allows them to bypass the regulatory hurdles that are usually attached with fiat withdrawals.
- Support for Stablecoins
Another reason hindering spending cryptocurrency is the price volatility. Avalanche Card allows its users to spend stablecoins such as USDC and USDT, which unlike other cryptocurrency, have a price that is pegged to US dollar and is not likely to change.
Therefore, users are able to spend digital assets without having to worry about volatility, making cryptocurrency a suitable alternative for everyday transactions.
- Access to Finance without Traditional Banking
A large percentage of the population in Latin America, Africa, and Southeast Asia are unbanked or underbanked. The Avalanche Card enables them to partake in the global economy without the need for a bank account. Users can make purchases, pay bills, and perform other financial activities as if they had a bank account with just a crypto wallet and the Avalanche Card.
- Eliminating High fees
Now users of the Avalanche Card will not have to go through the hassle of P2P or exchange crypto manually. The card facilitates real-time transactions and eliminates the need for expensive middlemen by serving as a connector between the digital crypto world and the tangible one.
How to get the Avalanche Card
Getting an Avalanche Card is easy and allows the user to spend cryptocurrencies as easily as cash. Whether using it for a purchase, paying bills, or doing some online shopping, the whole system is fast and easy. In this section, we describe how to get your Avalanche Card within a few steps.
- Begin with Signing up for the Waitlist
As the Avalanche Card is being released in stages, the launching phase begins with registering for the waitlist. Users can sign up here: Avalanche Card Website.
- Finalize the Registration Steps
When your turn on the waitlist comes, it’s time to register an account and go through identity verification. Identity verification may include KYC depending on your region. Be ready to provide the following:
- Account email
- A valid ID document (if needed)
- Address of the funding crypto wallet
3. Select the type of Card You Wish to Purchase: Virtual or a Physical One
- Physical Card – Best option for purchases at retail shops, ATM withdrawals, and other face-to-face transactions.
- Digital Card – Most suitable for payments through the internet or mobile devices.
4. Fund your card with Supported digital Assets
To start using the card, you need to fund your card with supported crypto assets. Some of these supported assets include:
- USDC (Stablecoin)
- USDT (Stablecoin)
- AVAX (Avalanche native token)
- Wrapped AVAX (wAVAX)
Once all these are done, you can start using your card.
Conclusion
With the Avalanche Card, people living in underbanked areas now have improved access to direct crypto spending, as it increases their ability to spend crypto anywhere Visa is accepted. The Avalanche Card is a game-changer for financial inclusion because it eliminates merchant adoption, high conversion fees, and banking restrictions. Users can now spend money globally without relying on traditional financial institutions.
The card is integrated with stablecoins such as USDC and USDT, enabling a reliable payment method while protecting users from volatility. It is also integrated with Visa, providing effortless daily transactions from buying groceries to shopping online.
The card will likely serves millions of people around the world, enabling swift, secure, and borderless financial transactions, which brings them one step closer towards achieving financial freedom.
