Gnosis, a blockchain project renowned for its expertise in decentralized finance and prediction markets, has introduced a novel Visa card that grants users the ability to expend funds held in their self-custodial wallets at any establishment accepting Visa. This endeavor signifies Gnosis’s dedication to bridging the chasm between self-custodial crypto wallets and prevalent payment mechanisms such as Visa.
Gnosis Card: A Catalyst for Self-Custodial Cryptocurrency Adoption
The advent of the Gnosis Card is a direct response to the growing trend of individuals moving their cryptocurrency assets away from centralized exchanges and towards self-custodial wallets such as MetaMask and Ledger in the wake of high-profile bankruptcy filings by companies like FTX, which brought to light the misappropriation of customer funds.
Gnosis’s solution addresses the challenge of utilizing self-custodial assets in the real world, an obstacle that the Gnosis Card aims to overcome. The card will be available initially in the UK and the EU, with plans to expand to additional regions such as Brazil, Mexico, Singapore, and Hong Kong in the future.
Gnosis Pay: Empowering Developers to Create Custom Crypto Payment Solutions
In tandem with the Gnosis Card, Gnosis is developing Gnosis Pay, a set of developer tools that empower cryptocurrency wallets to craft their own versions of the Gnosis Card for their users without the need to construct an entire online payment system from scratch.
The Gnosis Pay service is slated to launch in the US by the end of the third quarter and will collaborate with MakerDAO to make its USD-denominated stablecoin, Dai, available as an option for the credit card.
Pricing and Business Model of the Gnosis Card
The Gnosis Card is priced at EUR 30, with a breakdown of production and distribution costs totaling EUR 10 and the remaining surplus earmarked for the product’s engineering and compliance infrastructure.
Gnosis intends to generate revenue through transaction fees. As the card gains traction and adoption, it is anticipated that demand for Gnosis’s native token, GMO, will surge.
Fractal and Monerium: Collaborative Partnerships for Enhanced Functionality
Gnosis has engaged the services of Fractal for its know-your-customer (KYC) processes. Fractal provides a seamless platform for users to verify their identities with Gnosis, enabling them to establish Monerium bank accounts and subsequently apply for a Gnosis Card.
The Gnosis Card is backed by Monerium, a company that has introduced the Euro-denominated stablecoin EURe, the only stablecoin to have received regulatory approval within the European Union.
Monerium’s platform enables users to connect their wallets to an International Bank Account Number (IBAN). When users transfer funds from a bank account to a wallet-linked IBAN, the payments are minted as EURe stablecoins on blockchains such as Ethereum and Gnosis and appear in their wallets.
Conversely, when users initiate payments from their wallets, EURe stablecoins are burned and the corresponding euro equivalent is transferred to their bank accounts.
Conclusion
The launch of the Gnosis Card and the forthcoming Gnosis Pay service represent significant strides in the integration of cryptocurrency and conventional finance. These initiatives empower individuals with enhanced control over their digital assets and provide developers with the tools to create innovative cryptocurrency payment solutions.
As the cryptocurrency industry continues to evolve, it is likely that the Gnosis Card and Gnosis Pay will play an increasingly prominent role in bridging the gap between digital and traditional financial systems.
Disclaimer:
The information provided in this article is for informational purposes only and should not be construed as financial advice. Please consult with a qualified financial professional before making any investment decisions.
Author: Alex Brown
Credit and rights: MigBase.com