Bybit offers debit Mastercards after banning USD purchases

Bybit is preparing to introduce a new debit card that will enable users to make purchases and withdraw cash using their cryptocurrency holdings.

By debiting bitcoin balances when used to pay for goods and services, the Bybit Card will enable fiat-based transactions on the Mastercard network.

The program starts with the release of a free virtual card for online transactions; actual debit cards are scheduled to be made available in April 2023.

The service is compatible with Bitcoin, Ethereum, Tether, USD Coin, and Ripple (XRP) account balances.

Depending on a user’s place of residency, payments will immediately convert the balances of these initial cryptocurrencies into euros or pounds.

Withdrawals from ATMs and worldwide payments will be restricted to a user’s Bybit account’s total bitcoin holdings.

Moorwand, a London-based payments solutions business, issues the cards.

The launch of Bybit’s virtual and real debit cards follows the Dubai-based exchange’s announcement that it will cease U.S. dollar bank transactions.

One of its processing partners attributed the stoppage of dollar deposits and withdrawals to “service failures.”

Bybit customers may continue to make USD deposits via Advcash Wallet or credit cards, however, withdrawals by wire transfer must be completed by March 10.

On March 4, Silvergate Bank stated that it would discontinue its digital asset payment network, affecting crypto exchanges and companies in the United States.

In the meanwhile, a study published at the end of February 2023 indicates that Mastercard and Visa would delay disclosing or initiating more direct agreements with the cryptocurrency and blockchain industries.

Mastercard has been investigating payment possibilities in USDC through new partnerships, but Visa has hinted at intentions to enable consumers to convert cryptocurrencies into fiat on its network by 2023.