Crypto.com to Launch MCO Visa Card Program in the US, Over 100,000 Cards Now Reserved

Omar Faridi
  • Crypto.com's MCO Visa Card Program has already been introduced in Singapore.
  • Crypto.com and the Metropolitan Commercial Bank (MCB) are now planning to launch MCO Visa cards in the United States.

On November 16, the Metropolitan Commercial Bank (MCB) and Crypto.com announced that they are preparing to launch the MCO Visa Card program in the United States.

Crypto.com’s press release noted that its MCO Visa Card program had already been introduced in Singapore in October (through its affiliate company, Foris Inc.).

Key Features Of MCO Visa Card Program

As explained in the company’s announcement, the MCO Visa card is “a prepaid card” with the following key features:

  • “high-end metal cards”,
  • “no annual or monthly fees”,
  • “airport lounge access for select cards”,
  • “no-fee ATM withdrawals”,
  • “tap-and-pay functionality”, and
  • “no foreign transaction fees”.

Those looking to obtain an MCO Visa card may register via the Crypto.com wallet and card app.

The online registration process involves completing know-your-customer (KYC) checks - which include providing a government-issued ID for verification purposes. Moreover, Crypto.com’s wallet users can manage, or monitor, how their card is being used.

Over 100,000 MCO Visa Cards Now "Reserved Globally"

Similar to the standard features provided by most cryptocurrency wallets, Crypto.com’s wallet app allows users to check their incoming and outgoing transactions. However, one unique and important feature not typically found in other wallet apps is the ability to “freeze or unfreeze” Crypto.com’s payment card (“with a single tap”).

Notably, over 100,000 MCO Visa Cards have now been “reserved globally.” As mentioned on Crypto.com’s official website, the company’s wallet app allows users to “buy, sell, store, send, and track cryptocurrencies .”

In most cases, users looking to pay for goods and services have to convert their digital currency to fiat money via an exchange. With Crypto.com’s card, there is no need for this because the card itself automatically converts the user’s crypto to the fiat equivalent (which is what the merchant actually receives).

Accelerating Crypto Adoption

Mark DeFazio, the president and CEO of Metropolitan Commercial Bank, said:

We are pleased to work closely with Crypto.com and Foris in bringing this innovative product to the US market. This program speaks directly to The Entrepreneurial Bank spirit that we have and seek to promote. The MCO Visa Card is quite unique and provides a bridge between traditional banking and cryptocurrencies in a safe and compliant way.

Mark DeFazio

Kris Marszalek, the co-founder and CEO of Crypto.com, remarked:

We are thankful for the support of Metropolitan Commercial Bank in sharing our vision. The market demand for the MCO Visa Card has been overwhelming and we look forward to bringing it to customers as soon as possible. This is another important step towards our mission of accelerating the world’s acceptance of cryptocurrency.

Kris Marszalek

What Exactly Is Facebook’s ‘Libra’ Cryptocurrency? What Are Its Challenges?

The new decade is set to launch with one of the most ambitious cryptocurrencies yet, with the social media giant Facebook’s ‘Libra’ expected to start trading in a few months. The new coin certainly has the muscle behind it: in fact, it has an entire Libra ‘Association’ that consists of companies such as Spotify, Farfetch, Uber, Lyft, PayU (Naspers’ fintech arm), and Calibra. Along with a plethora of other venture capital firms spanning the blockchain and telecommunication networks, and some non-profit organisations.

The ‘vision’ of Libra is put in no uncertain terms on its official website. That is to create: a stable global cryptocurrency built on a secure network… enabling a more inclusive global financial system.

Libra’s Ambitions, and How It Will Work

What Facebook and the other giants hope to achieve is to connect everyone in possession of a mobile phone to the global financial infrastructure. These are what Facebook considers the ‘unbanked’, those who do not have access to a bank, but who do have a mobile phone.

Libra would give these unbanked masses the ability to transfer money across the world instantly, on a secure network and at a low cost. If implemented, Libra would be an example of ‘leapfrogging’ technology, in which developing societies bypass what traditionally would have been a necessary technological evolution (i.e. the establishment of more banks) in order to get to an end point.

Libra’s Security Other and Concerns

Current proposals put Libra on a blockchain that encompasses around 100 computer servers, at least that’s the ambition. The blockchain algorithms will be programmed to work as what’s known as a “command-line programme”, something that will make scripting and interactive usage possible; with an interface of consistent options and file formats. For further security, Libra is also thought to be using Byzantine fault-tolerant consensus approach. This means that, in theory, the wider blockchain cannot be compromised even if one of the servers is disrupted.

But not everyone has faith in the new cryptocurrency, even with all the financial backing it has. Again, in theory, it should be almost impossible for a cyberattack to disrupt Libra’s blockchain, as a third of its 100 servers would have to be disrupted before such an attack could even be launched.

The Libra Association has also stressed that each of its members will have their own server, and that it will be supported independently by them and secured. Furthermore, the blockchain will have its own consensus-based algorithm. Meaning that transactions must be approved by two-thirds of all the servers before going ahead. This should make transactions more measurable and efficiently processed. Facebook has even said that Libra would be capable of processing a thousand payments per second, which would make it about 500 times more efficient than Bitcoin is today.

Libra and the Issue of Regulation

Despite the proposed ambitiousness of Libra, the United States and European Union regulatory bodies are yet to be won over. They already do not like the strength of pre-existing cryptocurrencies. Some countries have even outright banned them.

To get round this problem, the Libra Association has marketed its currency as one that has been specially designed to be friendly to regulators from the get-go. They insist, for example, that Libra is a stablecoin. If true, then this should alleviate some national fears for its potential implications on monetary policies. Still, there are concerns that if the Libra is very popular, it could become “Too Big To Fail”, which of course is a phrase still haunted by the 2007-08 economic crises.

The reason for these TBTF anxieties lies in the fact that Libra is intended to be collateralised by other currencies and some debt obligations. If there was ever a run on Libra, it would lack a centralised bank to mitigate the damage.

Libra’s special status means it will be a global currency and not specific to any one nation. So it is only natural that some national governments have expressed concerns about how it will impact on their unilateral monetary policies. Libra’s global status assures that it will fluctuate differently to any one other currency, meaning it will be shaped by its underlying assets, and may even resemble something like an index in volatility.

One way to address these fears may be found in a report conducted by the Association of German Banks. The AGB has suggested restricting Libra for payment transfers only, and not giving it the ability to provide loans. this would prevent the cryptocurrency from becoming a money creation system in its own right.

Libra — Will It Be Safe to Invest In?

Cryptocurrencies have enjoyed successful investment status and investment is predicted to keep increasing until 2020 at a minimum. Blockchain investments in the Libra cryptocurrency should be considered as a hedge in a diverse portfolio to protect against falls in other types of investments. Of course, at the moment Libra is not an asset that can be invested in… yet. But once it comes online, there’s no reason it won’t enjoy the success of others (not including the decline of Bitcoin, which may be in response to more competition from other cryptocurrencies).

Once online, Libra should be safe to invest on optimised cryptocurrency trading platforms that can handle automated and manual trading.

Libra and the Future Market

iven other fears including loss of tax revenues and transaction fees, traditional banks have already acknowledged that change is coming. In its ‘Future of Finance’ report, the Bank of England has already said that “hard infrastructure” needs to make room for, and can work with, “soft infrastructure” (cryptocurrencies). But what needs to be in place is a “well-respected” judicial and legal system, along with clear regulations, standards and rules.

As for the Libra cryptocurrency, no one can doubt the ambition of such a project. But whether it is something that the market actually needs is still a question that no one as of yet has an answer for.

Featured image by Tim Bennett on Unsplash.


This article was written by Neil Wright of Oakmount Partners Ltd, an investment consultancy firm based in Essex, UK.