The convergence of crypto and traditional finance (TradFi) brings about various challenges, including liquidity limitations, the need for seamless technical integration, and the increasing demand for secure and flexible self-custody solutions. However, advancements in Web3 infrastructure and strategic partnerships are making crypto more accessible for everyday transactions, potentially transforming how users manage and spend their digital assets.
Baanx, established in 2018, is renowned for its partnerships with both Web3 and Web2 industry leaders such as Ledger, 1inch, and Mastercard. The Baanx team has achieved significant milestones, including connecting a debit card to a hardware wallet, integrating a decentralized exchange (DEX), and facilitating end-to-end stablecoin payments on a card network.
Baanx’s flagship product, the Crypto Life Card, allows users to use crypto as a consumer card at over 90 million merchants worldwide. Currently available in 32 countries, the CL Card plans to expand its services to the United States and Latin America.
In an interview, Simon Jones, Baanx’s chief commercial officer, discusses the crypto landscape and shares insights on integrating crypto into mainstream daily life.
Cointelegraph: What are the latest trends in the crypto space in 2024, particularly concerning crypto debit card adoption?
Simon Jones: 2024 will be a crucial moment as fintech and crypto converge, a trend that is already underway and expected to continue. The release of ERC-4337 has sparked interest in account abstraction, enabling users to connect multiple funding sources to a single wallet. Additionally, with Apple and Google easing App Store restrictions in many countries, there is now a market where crypto cards can drive the next generation of wallets and the creator economy. We now have open network capabilities on both blockchain and mobile, making Web3 ready for mass adoption.
CT: What are your thoughts on the growing awareness of self-custody among crypto users?
SJ: It’s fantastic to see users becoming more aware of where and how their assets are held and who has custody. This awareness allows them to choose the custody mix that best suits their needs. Our CL Card, for instance, enables users to connect various Web3 wallets, giving them the freedom to store assets as they prefer while maintaining instant access to their funds.
CT: How does the business side of the crypto ecosystem address changing user behavior and expectations in light of the rise of self-custody?
SJ: In a nutshell, account abstraction addresses this challenge. It allows users to link their preferred custody source to their chosen on-ramp/off-ramp, providing on-chain access to their assets. Account abstraction is essentially open banking for crypto, offering multiple transfer options and the flexibility to choose the most suitable one.
CT: How would account abstraction improve crypto payments and the functionality of crypto debit cards?
SJ: Account abstraction is revolutionary. In the past, custody was a challenge because the card issuer or provider had to take on the risk of settling and paying for purchases. This is why banks and platforms like Coinbase and Crypto.com require users to deposit money in advance.
With account abstraction, users can keep their funds until they are ready to spend them. It’s similar to paying with physical cash that you carry with you, but in a virtual form.
CT: Can you explain dual-asset cards? How do they work and what purpose do they serve?
SJ: Dual-asset cards enable the storage and spending of both crypto and fiat assets, as well as stable assets, with complete flexibility. Our goal is to make any tradeable asset spendable over time. The primary challenge is liquidity, but as we and the market grow, we envision a future where you can spend anything in-store, from crypto and fiat to reward points like Airmiles. If it can be tokenized, it can be used.
CT: What challenges does the Crypto Life Card address in making crypto more accessible for daily purchases?
SJ: We handle the complexities behind the scenes so that users don’t have to worry about them. Our product has undergone extensive technical development to ensure seamless functionality. Additionally, we offer lending services in several countries, allowing users to borrow fiat against their crypto holdings. This means they don’t have to sell their crypto to make purchases.
CT: You collaborated with 1inch on the launch of the 1inch Card. Can you explain your role in this partnership? How does Crypto Life empower the 1inch Card?
SJ: We are delighted to partner with 1inch to bring this revolutionary product to life. Together, we have meticulously designed the product to meet the needs of their users. We also manage the card program on their behalf, ensuring a seamless and robust user experience.
In addition to the technical collaboration, we work closely to market this groundbreaking offering, aiming to reach and empower users worldwide with unparalleled access to the benefits of crypto. This partnership showcases our combined strengths and sets a new standard for decentralized finance.
CT: With traditional financial giants like Mastercard entering the crypto domain, how do you envision the future relationship between crypto and TradFi?
SJ: Sometimes, you have to dismantle the world, fix it, and then rebuild it. Traditional finance doesn’t work for many people. Approximately 1.2 billion people worldwide lack access to basic financial services. By enabling mass consumer adoption of Web3 products while retaining familiar payment methods like tapping or swiping a card, we can remove significant barriers to growth.
Crypto thrives on open source collaboration, and connecting with a vast network like Mastercard’s is incredibly powerful. As the world becomes more tokenized and open, partners like Mastercard will play a crucial role in embedding Web3 into the lives of billions.
To learn more about Baanx, visit their website.