MakerDAO Dai, Digix DGX and DGD Now Spendable Through Monolith’s Visa Debit Card
The idea of being able to spend cryptocurrency through conventional means is nothing new. From Bitcoin ATMs to online payment processors, multiple initiatives have come forward in the past few years to make cryptocurrency payments easier to execute over commercial and retail locations.
With that, not many of those programs have been able to break through to mainstream payment mechanisms. But one of the most recent initiatives is aiming to turn this around.
Announced recently, the program involves stablecoin platforms MakerDAO and Digix as well as payment processing behemoth Visa.
The initiative is powered by Monolith, a U.K. based decentralized banking solution. The Monolith partnership would make it possible for MakerDAO’s Dai as well as Digix’s DGX stablecoins to be spendable through the Visa network. The network will also support Digix’s governance token, DGD.
According to details, the program was designed to expand cryptocurrency use in everyday applications. With this idea in mind, it is being rolled out through Monolith’s mobile app for easier accessibility for users.
How is Monolith Making it Possible to Spend Dai, DGX, and DGD Through Visa?
Monolith is an Ethereum based decentralized banking platform. It aims to make it easier for Ethereum and ERC-20 holders to spend their cryptocurrencies at accessible locations.
While the platform is based on blockchain and has a native token by the name of TKN, it is also accessible through a mobile app that is currently available for iOS.
Through this mobile app, users who are interested in using Monolith’s services could sign up with the platform and use its cryptocurrency-centric features.
According to its most recent development, Monolith would now allow its users to load Dai, DGX, and DGD into its Visa-powered debit card. Those who choose to go this route could then spend their cryptocurrency in over 200 countries and territories all over the world, thanks to the support of Visa’s massive infrastructure.
This way, those who hold stablecoins such as Dai and DGX could spend their asset-backed digital currencies in a way that is similar to spending fiat currency. This doesn’t only give them the convenience to use their digital assets without having to exchange them into fiat currency, but it also saves them the multiple charges levied by exchanges for transfers and conversions.
Rolled out on August 15, 2019, the feature is now available to all Monolith users in Europe. Through this initiative, Monolith aims to simplify the cryptocurrency spending process and make it seem like a standard financial transaction than something that needs complex procedures.
Monolith is Quite an Established Brand in the Cryptocurrency Sector
Formerly known as TokenCard, Monolith started its operations in 2017 through an initial coin offering (ICO) on the Ethereum platform.
The platform was launched with the promise to make simple cryptocurrency payments. All made possible through its decentralized infrastructure.
After going through some branding changes, it finally emerged as Monolith in 2019 and partnered with Contis, a U.K. based mobile banking solutions provider. An entity that is also a licensed issuer for Visa debit cards.
Together, the fintech firms developed a new program that would allow the holders of select cryptocurrencies to spend their digital assets on retail locations.
The platform was to use Monolith’s blockchain infrastructure and Contis’ partnership with Visa to bring about a better cryptocurrency transaction experience.
MakerDAO and Digix’s Cryptocurrencies Were Used for a Reason
To start with cryptocurrencies that would be easier to spend in place of fiat currency, Monolith chose to debut Dai, DGX, and DGD on its joint initiative with Contis.
Among other reasons, one of the significant explanations behind Monolith selecting these cryptocurrencies is them being “stablecoins” or having their value backed by real-world assets.
Since these cryptocurrencies are tied to actual, physical assets in the world off of the blockchain, the value doesn’t fluctuate.
Where the value of even popular cryptocurrencies such as Bitcoin and Ethereum makes unprecedented jumps and sudden dips, stablecoins such as Dai remain out of harm’s way. This makes them highly relevant for day to day spending.
Monolith and Dai Go a Long Way
Dai also has a deeper connection with Monolith.
After completing its token sale in 2017, Monolith went on to secure its raised funding in Ethereum by using Dai.
By making use of the stablecoin’s collateralized debt position (CDP), Monolith was able to put its Ethereum as collateral to receive Dai-based stablecoins that had their value tied to U.S. dollar.
When Ethereum’s value tanked to the horror of many ICO owners, Monolith stood firm by keeping its investment intact in Dai. As a result, the platform sustained its operations in the past two years to the point where it finally collaborated with mobile banks such as Contis.
Having seen the power and benefits of stablecoins in the form of Dai, Monolith is doubling down on its faith in this subclass of digital assets. By making them available for broader usage, Monolith and its team mean to demonstrate to the masses just how easy it is to use cryptocurrency for conventional transactions.
Monolith is Truly Using the Advantage of Stablecoins
While the Visa-powered debit card initiative is impressive, it is not a novel idea.
Many other companies have launched similar initiatives in the past, with popular cryptocurrency exchange Coinbase being one of the most prominent mentions in this category.
Coinbase launched its cryptocurrency-based, Visa-powered credit card in the U.K. on April 2019. In June 2019, the exchange announced that it was extending support for the product by launching it in 6 more countries, namely Spain, Germany, France, Italy, Ireland, and the Netherlands.
While Monolith’s Visa debit card supports Ethereum-based assets, Coinbase’s Visa credit card supports Bitcoin, Litecoin, Ethereum, and other assets that are supported by the exchange.
But given that Monolith is also one of the first prominent entities to offer a Visa debit card with stablecoins, the company has a certain edge over other offerings that do not support stablecoins as of yet.
It remains to be seen how well Monolith does in its target market, and whether it would be sustainable in the face of competition as massive as Coinbase.
The ZB Group realizes that there is a variety of problems and opportunities present within the blockchain sector. The Group sees advancements such as the ability to liquidate crypto assets in a simple manner as a further step forward in proving out value within the blockchain and cryptocurrency sector.
Further, it is apparent that the blockchain industry will continue to rise and shift industries each day.
About ZB Group
ZB Group was founded in 2012 with the goal of providing leadership to the blockchain development space and today manages a network that includes digital assets exchanges, wallets, capital ventures, research institutes, and media. The Group’s flagship platform is ZB.com, the industry leading digital asset exchange. The platform launched in early 2013 and boasts one of the world’s largest trading communities.
Learn more about ZB Exchange by visiting www.zb.com.