BREAKING: Problems with Bitcoin debit cards – what is behind them?

Since yesterday evening several sites report that there are problems with Bitcoin debit cards like Bitwala, TenX, Mobi – what’s behind it.

Bitcoin debit cards are very popular shown in the Bitcoin loophole

Because they are easy to use as a means of payment at any debit card accepting location. Accordingly, cards from various providers such as Bitwala, TenX and BitPay are widely accepted by people who see the Bitcoin loophole by onlinebetrug as scam Bitcoin not just as a store of Bitcoin loophole value, but as a real means of payment.

For such debit cards to be used like other cards, their providers must cooperate with credit card service providers. VISA and MasterCard are the two largest companies, which is why cooperation with them is an option.

Of course, this leads to a dependency on these service providers on the part of the companies behind the Bitcoin debit cards. This dependency has now become a major problem and Bitwala has made a statement to BTC-ECHO:

“Visa’s decision today is a clear sign that traditional financial services providers are not interested in contributing to the growth of the crypto industry and the crypto economy. Right now, our customers are our top priority and we are working to help the affected users.”

But Bitwala is not alone with the news spy

TenX also seems to be affected by the news spy. This morning they wrote that payments with the TenX card are currently not possible. They refer to discussions with their issuing bank WaveCrest, which is responsible for the European Bitcoin debit cards. In a recent announcement, Julian Hosp, CEO of TenX, explained that Visa WaveCrest had withdrawn its licence to activate the cards. However, this problem is not supposed to be dramatic; after all, TenX has been looking for the news spy a new issuing bank for quite some time. All in all, it looks like there is a problem between Visa and WaveCrest. To what extent the involvement of crypto currencies plays a role cannot be assessed beyond doubt at this point in time.

BitPay has issued a longer statement according to which the BitPay Card cannot be used outside the United States. BitPay also attributes the problems to the provider WaveCrest, which has been ordered by Visa to stop all Visa debit accounts. However, the American Bitcoin debit card provider is closing its announcement hopefully:

“We expect to be back in your country soon. As part of our commitment to BitPay Card users, we will send you an email when the BitPay Card becomes available in your country again.”

Addendum: The BTC-ECHO editorial staff has now received a comment from the VISA Deutschland press office:

“Visa’s decision relates exclusively to WaveCrest, and by no means to the entire crypto industry or crypto economy. We can confirm that Visa’s license agreement with WaveCrest will be terminated and that all Visa card programs of WaveCrest will be discontinued. Visa is committed to the security of its payment system. Compliance with the Visa rules is crucial to ensuring the security and integrity of the Visa payment system. The card programs of our issuers must comply with our license terms and all applicable laws.”