Glufco, a Venezuelan “investment crypto-bank” has launched crypto-debit card services, along with a point of sale (PoS) system. The crypto-debit card would support Bitcoin, Ethereum, Dash, and Petro, with the firm planning to add other cryptocurrencies depending on the demand.
The launch of Glufco’s crypto-debit card services was announced in a social media post by the state-authorized crypto-exchange, CriptoLAGO, on 1 October, an exchange which is also the firm’s official partner. The social media post read,
“What we were waiting for, our alliance with Glufco puts us at the forefront.”
However, the crypto-debit card won’t offer support for fiat currencies, not even the troubled national fiat Sovereign Bolivar (VES). Glufco referred to their newly launched debit card and the PoS system as a “cryptocurrency transfer device.”
Nuestro Dispositivo de Transferencia de Criptoactivos -DTC- usa software multiplataforma Windows/Linux/Mac y recibirá actualizaciones automáticas para la incorporación de nuevas criptomonedas y actualizaciones mayores para la inclusión de nuevas funcionalidades. pic.twitter.com/3YMrnNteTX
— Glufco (@glufco) October 2, 2019
Venezuela is embracing crypto to get past the hyperinflation and trade sanctions
Venezuela’s national fiat Sovereign Bolivar (VES) has lost all its value owing to hyperinflation and presently, the national fiat is not even worth the paper it is printed on. In order to keep the economy running amid various trade sanctions imposed by the US, the country launched its own national digital currency, Petro, backed by Venezuela’s plentiful oil reserves. However, Petro was haphazardly planned and turned out to be dud, paving the way for mainstream cryptocurrencies like Bitcoin and Ethereum to enter the market.
However, the Venezuelan government saw the potential in using crypto to avoid trade sanctions and as a method for free international payments. AMBCrypto reported on the same too, with the government now looking to add Bitcoin and Ethereum to its Central Bank reserves.
Crypto-banking services were first made legal in Switzerland, where SEBA Crypto AG and Sygnum became the world’s first regulated crypto-bank. Switzerland’s regulatory body FINMA has already approved banking and security dealing licenses to the first crypto-banks.