LBX, the newly-launched website that will allow users to trade cryptocurrencies, plans to launch a spending card in the soon. This card will convert their holdings in bitcoin and other virtual currencies to pounds and let them spend it anywhere.
Known as “Dragoncard”, counters a key criticism of bitcoin – that it is mostly a commodity and has few uses in the real world. Only a handful of major companies accept payment in bitcoin, which has been blighted by concerns about money laundering and other criminal activity. But this is now over.
With this brand-new option, when a shopper spends money with the Visa card, LBX will pay the retailer in British pounds and recoup the money from the shopper’s online wallet, converting one of the cryptocurrencies they hold into pounds, charging a 0.5% fee.