Debit Cards Powered by Smart Contracts: A Swipe At a New Path

Over the past 18-24 months, there has been a flurry of activity directed towards better integrating debit cards into the global cryptocurrency ecosystem. With this has come talk about the use of smart contracts – computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract –  as a means of providing card users greater control and security over their funds.  

In an announcement destined to further ignite advancements in this space, Switzerland-based Monolith Studio announced on April 20th the launch of TokenCard. TokenCard, an innovative crypto-based debit card powered by smart contracts, brings the VISA payments network to Ethereum so that token holders will be able to use Ether as well as other ERC20 tokens to purchase items in places that accept VISA debit cards.

TokenCard will launch its ‘creation’ of a new ERC20 token, called TKN, on May 2nd. TKN holders will have a pro-rata share in the accumulation of different Ethereum tokens that accrue to the ‘TKN Asset Contract.’ The technical details of this are shared in-depth in the TokenCard/Token Platform Whitepaper v1.0.2

Monolith Studio, the creator of TokenCard, is a web startup that’s working to solve the problem of how to bring Ethereum into the real world.

Says Mel Gelderman, co-founder of Monolith Studio and the mind behind TokenCard:  “We are witnessing the birth of the biggest shakeup in financial history with the introduction of the Ethereum Economy. TokenCard is a platform that brings this new kind of economy to the general public through a clever trifecta of technology.”

Here’s how it works: Users select a Contract Wallet through TokenCard rather than having to deposit funds outside of their control. TokenCard VISA debit cards then can be used to draw funds from this contract wallet using Ether and almost any ERC20 token.

Users have access to a Token App to operate their Contract Wallet and manage their TokenCard, giving them a top-tier mobile banking, multi-asset spending experience. By way of example, users could pay for their afternoon lunch with Ethereum tokens and can even split the bill between for example 50% REP, and 50% ETH. And all while remaining in full control of their assets.

When asked about how TokenCard makes life easier for consumers, Gelderman points to how Ether users currently need to undertake a whole range of steps that include withdrawing, depositing, and creating wallets and accounts. He says that TokenCard streamlines the experience from beginning to end offering a one-stop solution for the problems that have pestered Ethereum users

He goes on to note that TokenCard also represents a quantum leap in terms of security as a deposit-less platform. Here, users store their assets not with TokenCard the company, but in a Smart Contract Wallet that they themselves issue and control. They can then grant the TokenCard a defined allowance such as $100 dollars a day.

Aside from providing a solution for the underlying Ethereum community, TokenCard says Gelderman is uniquely equipped to improve upon the entire spectrum of regular debit card and banking services. Markets like international remittances and asset management are ripe for innovation using Ethereum technology, and TokenCard is well-positioned to reach these new thresholds as a revolutionary financial solution.

In terms of the long-term vision for TokenCard, Gelderman had this to say in closing: “We envision a world where TokenCard outcompetes the traditional banking competition on all levels from user interface to security to flexibility. As for the much bigger picture, at Monolith we’re dedicated to ushering in the Ethereum Economy, and TokenCard is just what is needed right now to get us there.”