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Monday, May 19, 2014

How to Debit Card with Bitcoin

Why would anyone expect any different defense from the international banking cartel? They have been nesting in the plush uplift bras and groin holsters of congresscritters for as long as I can remember. It beats competing in a free market, no? Especially so, since it's your money going to the government-dependent lobbyists!

MasterCard is crying for protection from Bitcoin.   The Washington, DC, lobbying firm Peck Madigan Jones have been hired to concentrate on swaying Capitol Hill of the threat from Bitcoin to the established credit card giant and a $50 Billion a year fee based financial services market.  Therefore, expect to see Visa next to initiate a similar course of action.

Globe and Mail -  How Hidden Credit Card Fees Work

Bitcoin is emerging as a major competitor in the currency exchange sector due to its drastic lower fees and ease of transaction, especially at the international level.  MasterCard and Visa, with their high fees and transaction costs are vulnerable to this low cost alternative. 

In perspective, no one should be surprised at this howl for protection.  MasterCard, Visa, and Bitcoin fundamentally offer very similar capabilities in the area of digital currency services, but, in the case of Bitcoin, at significantly less cost to the user.   

As if the emergence of Bitcoin as a low cost alternative to the long-established credit card industry wasn’t enough, now MasterCard and Visa are sweating the emergence of Bitcoin debit cards, like Bitcoin Money, BitPlastic, and Xapo.  

These cards are indistinguishable at the ATM from MasterCard and Visa. 

The Xapo debit card will allow you to use your current Bitcoin funds and convert it into currency anywhere that MasterCard is accepted.

One point to consider is that instead of lowering their cost structure and associated fees with making a MasterCard transaction they would rather use their clout and those same fees to hire lobbyist.  Thus, signaling that MasterCard feels that the political process will yield better results than the open market and that the vote of politicians is a surer means of protecting their $50 Billion yearly cash cow.

MasterCard lobbying on digital currency bitcoin

MasterCard is paying lobbyists to focus on the growing digital currency bitcoin, according to federal lobbying disclosure records.

In a quarterly report filed this month, lobbying firm Peck Madigan Jones said that five of its lobbyists were concentrating on “Bitcoin and mobile payments,” among more than a dozen other issues, on behalf of MasterCard.

The payment giant is the first company to officially lobby on the virtual currency, according to federal disclosure records.

In a statement sent to The Hill, MasterCard said that it was “gathering information in connection with recent congressional hearings to better understand the policy issues around virtual and anonymous currencies.”

The bitcoin company Xapo is working with banks on a bitcoin debit card that uses MasterCard and Visa networks, but MasterCard said on Tuesday said that it had no relationship with the company.

Bitcoins have been controversial on Capitol Hill, where some lawmakers have viewed them skeptically and Sen. Joe Manchin (D-W.Va.) even called for an outright ban. Still, others have been quicker to embrace them.

Defenders counter that the currency is no more risky than cash, but say it has the potential to revolutionize the way people pay for things. Backers say that bitcoins are safe and transactions are much cheaper for businesses than credit cards, which charge fees.

So far, Congress has been interested in learning about the money but has resisted passing legislation on its use or treatment. MasterCard’s lobbying could be a sign of new activity on Capitol Hill.

Other agencies, however, have begun to flex their oversight muscles on the issue. 
via bitcoinassay