A few days after Metamask and Mastercard came together to launch a pilot program for a crypto debit card in the US, crypto purists are not having it. A large section is criticizing the move, saying that it undermines the ethos of cryptocurrency.
With the debit card, users can spend directly from their Metamask wallets, simplifying crypto transactions. They can convert their crypto into fiat currency in real-time as they transact through Linea, a speedy layer-2 network from Ethereum.
Disgruntled crypto stakeholders raise concerns
The launch of the Metamask debit cards has raised serious concerns among crypto users. They argue that the card’s structure negates decentralization and financial freedom, key pillars of cryptocurrency.
According to disgruntled crypto users, the card will box its users to traditional banking systems. Muna O., a crypto purist, asked, “Wasn’t the whole ethos of crypto to provide an alternative system to fiat?” while highlighting the contradiction.
The partnership with Mastercard is seen as an attempt to undermine the autonomy on which cryptocurrency is premised.
There are also concerns about security, more so with centralized systems. Johana Castellanos, a blockchain analyst, called for sophisticated security measures rather than relying on what is currently there. Johana pointed out that Metamask’s wallet has endured frequent attacks.
The cost associated with the debit card has also been mentioned. There are fears that the percentage swap fee might be high, around 6 to 9%. Because the card will be unregulated, it will attract juicy fees for Metamask and Mastercard to reap while hurting the users, contrary to the promise of crypto.
Metamask and Mastercard have high hopes for pilot program
The rollout of the card in the US follows earlier rollouts in the EU, UK, Brazil, Mexico, and Colombia with eligible currencies including USDC, USDT, and WETH.
The Metamask card was promoted as a way to avoid the hustle of transferring cryptocurrency to a bank or centralized exchange before spending. The partnering entities argue that the card will boost the public adoption of cryptocurrency.
On one hand, Metamask has robust security features to ensure the card is tamper-proof and difficult to hack. On the other, Mastercard has a wide merchant network, giving the card fast, cheaper and secure spending.
Lorenzo Santos, Senior Product Manager at Consensys said, “Metamask card pilot gives people more freedom to spend crypto. Metamask card represents a major step to removing the friction that has traditionally existed between the blockchain and real-world commerce.”
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