Gnosis, a leading blockchain technology company, has made a groundbreaking announcement today with the launch of their highly anticipated debit card, Gnosis Card. This innovative product will harness the power of their new payment network, Gnosis Pay, allowing users to seamlessly transact with cryptocurrencies in the real world.
Initially, Gnosis Card will be available in European Union (EU) and European Economic Area (EEA) countries, as well as the United Kingdom (UK). However, Gnosis has ambitious plans to expand its services to additional regions, including the United States, Brazil, Mexico, Singapore, and Hong Kong, in the fourth quarter of this year.
One of the key differentiating factors of Gnosis Card is that users will need to connect their wallets to utilize their funds for real-world payments. This approach sets it apart from traditional Web2 payment networks. When using Gnosis Card, payments can be made anywhere Visa is accepted, with funds being directly withdrawn from the user’s wallet in real time, eliminating the need for pre-loading the card.
“It is different from Web3 payment cards because it is not prepaid. If you have a Binance card, you load your account with crypto and spend from that balance. With Gnosis Pay, you spend from your self-custodial wallet the moment you tap your card,” explained Friederike Ernst, co-founder of Gnosis Chain and Gnosis Pay, in an interview with Decrypt.
Initially, Gnosis Card will support EURe, a stablecoin pegged to the Euro, for transactions. However, the Gnosis Pay team is actively working to integrate MakerDAO’s decentralized stablecoin, DAI, in the near future, offering users more flexibility in their payment options.
Ernst highlighted an upcoming feature that will enhance user experience: “A feature we will add in the future is that if you’re out of EURe but have USDC, for instance, it will ask whether you want to swap [your tokens].” This capability will allow users to seamlessly switch between different cryptocurrencies when making payments, further increasing convenience.
To enable the seamless functioning of Gnosis Pay, Gnosis has deployed a custom-built layer-2 protocol on top of the Gnosis Chain. This innovative solution ensures scalability and facilitates the gathering of Know Your Transaction (KYT) and Know Your Customer (KYC) details required for Visa off-ramp compliance. These details are collected through Fractal, a secure data-gathering platform.
Gnosis has prioritized user convenience by abstracting many technical complexities. Account abstraction, made possible by Gnosis’ use of Safe, eliminates the need for a seed phrase. Instead, users can sign into the Gnosis Pay web app using their existing wallets. Behind the scenes, Gnosis has developed new wallets to enhance security measures.
The launch of Gnosis Card and Gnosis Pay marks a significant step forward in the adoption of cryptocurrencies for real-world transactions. By combining the advantages of self-custodial wallets with the ubiquity of Visa acceptance, Gnosis empowers users to effortlessly utilize their crypto holdings for everyday purchases. As Gnosis expands its reach globally, it is expected to redefine the payment landscape and accelerate the mainstream adoption of digital currencies.
