ChainCatcher Space: Dialogue with the Head of 4E Financial Card, Challenges and Solutions for the Popularization of Cryptocurrency Payments

In this era filled with cutting-edge technology and innovation, cryptocurrency payments are gradually leading the wave of transformation in the financial sector. What challenges does cryptocurrency payment face? How will they be resolved?

In light of the current difficulties in popularizing cryptocurrency payments, ChainCatcher has invited the head of 4E Financial Card to discuss the topic "Challenges and Solutions for the Popularization of Cryptocurrency Payments."

Key Highlights of This Content: The head of 4E Financial Card delved into the current state of the cryptocurrency payment industry, future development trends, and the latest developments of 4E in this field during the live broadcast. The content covers the current stage of cryptocurrency payment development, market acceptance, and user experience of cryptocurrency financial cards, with a focus on the Visa consumption card launched by 4E and its unique usage scenarios and advantages.

Additionally, the live broadcast discussed the positioning of cryptocurrency financial cards in the global market and their future development prospects, providing users with rich industry insights and practical advice. Below is the text content from ChainCatcher Space:

1. As an important bridge connecting the Web2 and Web3 worlds, the development of cryptocurrency payments has always attracted attention. There have been predictions that the global cryptocurrency payment industry is expected to reach hundreds of billions of dollars within the next three years. What is the current state of the cryptocurrency payment industry? What stage has it entered?

The cryptocurrency payment industry has seen significant development in recent years, gradually moving from a fringe market to the mainstream. Some key development stages and trends in the industry currently include:

1. Increased Acceptance: More and more merchants and service providers are beginning to accept cryptocurrency as a payment method. This includes some large retailers and online platforms: Microsoft Xbox Store, Shopify, PayPal, etc.

2. Technological Integration: Payment technology providers are developing more user-friendly cryptocurrency payment solutions to better integrate traditional financial systems with blockchain technology. For example, traditional payment systems like PayPal and Square have begun to support cryptocurrencies.

3. Development of Regulatory Environment: Different countries and regions have varying regulatory attitudes towards cryptocurrencies, ranging from outright bans to active embrace. The clarification and stabilization of the regulatory environment are crucial for the development of the cryptocurrency payment industry, as they affect the confidence of businesses and consumers.

4. Enhanced Security and Privacy Protection: With technological advancements, the security and privacy protection features of cryptocurrency payments are continuously improving. However, this remains an ongoing challenge, involving combating hacking attacks and preventing fraud.

5. Rise of Decentralized Finance (DeFi): DeFi provides an ecosystem for financial services without traditional financial intermediaries, bringing new momentum and innovation to the cryptocurrency payment field.

6. Cross-Border Payments: Cryptocurrencies show unique advantages in handling cross-border payments, as they can offer lower transaction fees and faster processing speeds, which are very attractive to merchants and consumers.

Overall, the cryptocurrency payment industry is in a rapid development phase but still faces many challenges, including regulatory uncertainty, market volatility, and the need for broader acceptance. In the future, as technology matures and the regulatory environment improves, cryptocurrency payments may become more widespread.

2. The Director of Payment Business Development at Binance stated at an offline meeting in April, "The adoption rate of cryptocurrency payments is growing at a rate of 14% per year, with more companies recognizing cryptocurrency payments, and traditional financial institutions are rushing to issue Visa and Mastercard cryptocurrency financial credit cards to support users in recharging and spending cryptocurrencies." Why are cryptocurrency financial cards, as a payment product aimed at end-users, so popular in the market?

Cryptocurrency financial cards, especially those that collaborate with mainstream payment networks like Visa and Mastercard, are popular in the market for several reasons:

1. Ease of Use: Cryptocurrency financial cards simplify the complex cryptocurrency payment process, allowing users to easily use cryptocurrencies for payments in their daily lives, just like traditional credit or debit cards. This seamless payment experience is crucial for the popularization of cryptocurrency payments.

2. Wide Acceptance: By partnering with global payment networks like Visa and Mastercard, cryptocurrency financial cards can be accepted at millions of merchants worldwide. This provides great convenience for cryptocurrency holders, as they can use cryptocurrencies almost anywhere that accepts traditional credit/debit cards.

3. Advantages in Cross-Border Payments: Cryptocurrencies are inherently decentralized and borderless, making cross-border payments more convenient and cost-effective. Cryptocurrency financial cards provide users with a convenient tool for cross-border consumption, especially when traditional bank transfers may incur high fees and long processing times.

4. Financial Inclusion: For residents in areas underserved or inaccessible by traditional banking systems, cryptocurrency financial cards offer a means to access the global economy and conduct digital transactions, enhancing financial inclusion. Additionally, they eliminate the extra risks associated with cashing out, allowing cryptocurrency earnings to be directly reflected in real life.

5. Security and Privacy: Although the anonymity of cryptocurrency transactions is challenged to some extent (especially when interoperating with traditional financial structures), many cryptocurrency financial cards offer higher levels of security measures and privacy protection, such as using strong encryption technology to protect users' funds and identity information.

6. Rewards and Incentives: Many companies issuing cryptocurrency financial cards offer attractive rewards programs, such as cashback and points, making cryptocurrency cards not just payment tools but also financial products that can bring additional benefits. For example, our 4E Financial Card recently launched a Visa consumption social media check-in event, offering cashback vouchers and a chance to enter a whitelist for physical cards.

Therefore, cryptocurrency financial cards, with their convenience, functionality, and compatibility with traditional payment networks, have become an important bridge connecting traditional finance and the cryptocurrency economy, gaining popularity among end-users.

3. On May 7, the one-stop financial asset trading platform 4E announced the launch of the Visa consumption card. Can you introduce what kind of product this is? What are its usage scenarios?

The 4E consumption card, in collaboration with Visa and as part of the Visa network, covers over 200 countries and regions and millions of merchants, providing wide acceptance globally. It offers convenience for shopping, dining, travel, and other consumption scenarios. Its main features include:

Seamless Conversion: Users can recharge their 4E Visa consumption card with cryptocurrency and convert it to fiat currency for direct use anytime and anywhere globally, without cumbersome exchange processes and without worrying about exchange risks.

No KYC Required: Unlike traditional financial systems, the application process for the 4E Visa consumption card is simple and convenient, with no KYC procedures required, simplifying the process while reducing the risk of personal information leakage.

Security Assurance: The 4E Visa consumption card employs advanced encryption technology and security measures to ensure transaction information and fund safety, while strictly complying with laws and regulations to protect consumer rights.

No Annual Fee and No Transaction Fees: The 4E Visa card has no annual fee; the application requires only a 10U card opening fee and a minimum recharge amount of 10U, with the entire process expected to take about 5 minutes to obtain the 4E Visa financial card.

Usage scenarios support most mainstream domestic payment platforms, except for Apple Pay.

4. Before launching the Visa card, 4E also launched the Mastercard financial card. What are the differences between these two products?

In comparison, the Visa card has the following characteristics:

1. Richer supported scenarios, covering five aspects: food, drink, accommodation, transportation, and education (chatgpt). Additionally, as part of the Visa network, it covers over 200 countries and regions.

2. No spending limit; platform limits are subject to the platform's regulations.

3. Security: Subsequent updates will include notifications for insufficient balance, email alerts, and a self-service unfreeze interface.

4. As a prerequisite for applying for a physical card, having a 4E Visa consumption card is a necessary condition for obtaining the qualification for a physical card.

5. For any cryptocurrency financial product, compliance and asset security are fundamental. How secure is the 4E financial card? How does it protect users' assets?

The 4E financial card is based on the 4E one-stop asset trading platform, which has a strong team background and substantial funding: it holds compliance licenses and collaborates deeply with GBE, meeting EU-level regulatory requirements and standards. Additionally, 4E has a good reputation and recognition in the industry and is a global partner of the Argentina national team.

Furthermore, the 4E financial card operates within different legal frameworks globally, complying with local regulatory requirements, including but not limited to Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. This not only ensures the legality of the business but also enhances user trust in the product.

6. Why does 4E, as an asset trading platform, continue to expand its financial card business? What is the positioning and goal of financial cards within the entire 4E product line? What can we expect in the future?

Combining online and offline has always been our focus, and financial cards are an important part of expanding offline scenarios, allowing direct use of cryptocurrency assets for consumption. The real transaction volume in this area is enormous, and our continuous expansion in this business undoubtedly empowers the entire industry; financial cards are a strategic product for 4E, and we have invested many resources in their development and improvement. Our goal is to enable every cryptocurrency trader to use financial cards for all offline consumption scenarios.

In the future, 4E will launch physical cards, achieving a level of security and convenience comparable to using bank cards for transactions, including instant payments, cash withdrawals, transfers, and more. We will also draw a user today to receive a whitelist qualification for the physical card.

7. Currently, there are multiple exchanges, wallets, infrastructure products, and traditional financial institutions issuing cryptocurrency payment cards in the market. Faced with a plethora of cryptocurrency financial cards, how should users choose the right cryptocurrency payment card for themselves? What are the screening dimensions?

When choosing the right cryptocurrency payment card, users need to consider multiple dimensions to ensure they find a product that best meets their needs. Here are some main screening dimensions:

1. Security: Check the security measures provided by the cryptocurrency financial card provider, including whether they use advanced encryption technology, multi-factor authentication, and whether they have a strong security record and policies. Understand how they handle and protect user data.
2. Fees and Rates: Understand all related fees, including annual fees, transaction fees, withdrawal fees, and any other potential costs. Also, consider how exchange rates are calculated, especially when used cross-border. The 4E Visa consumption card has no annual fee and no transaction fees, with only a 10U card opening fee and a 4% recharge fee.
3. User Experience: Consider the user interface and ease of use of the cryptocurrency payment card. An intuitive and user-friendly interface can greatly enhance the user experience.
4. Rewards and Incentives: Evaluate how the card offers rewards, such as cashback, points, or other discounts. Whether these rewards align with your spending habits and needs.
5. Range of Supported Cryptocurrencies: Check which cryptocurrencies the card supports. Some cards may only support major currencies like Bitcoin and Ethereum, while others may support a wider range of currency options.
6. Legal and Regulatory Compliance: Ensure that the cryptocurrency financial card service provider complies with relevant laws and regulatory requirements, especially in your geographical location. This relates to the product's legality and sustainability.
7. Customer Support: Good customer service is crucial, especially when dealing with financial products. Assess the quality of the provider's customer support, response times, and supported languages.
8. Brand and Community Reviews: Research the reputation of the card provider, user reviews, and community feedback. A reliable brand will have higher user satisfaction and a positive market reputation.

By considering the above factors comprehensively, users can more easily find a cryptocurrency payment card that meets their personal needs and preferences. This not only allows them to enjoy the convenience and benefits brought by cryptocurrencies but also ensures the security and compliance of their funds. The 4E financial card performs well in these aspects.

8. Although cryptocurrency financial cards have brought cryptocurrencies into everyday usage scenarios, for most coin holders, cryptocurrency financial cards are still unfamiliar. Why haven't cryptocurrency payment cards become mainstream? What efforts are needed to become a widely adopted product?

The reasons cryptocurrency financial cards have not yet become mainstream mainly include the following aspects:

Cognitive Barriers: Many users lack understanding of cryptocurrencies and related technologies, creating cognitive barriers.

Regulatory Uncertainty: Different countries and regions have varying regulatory policies regarding cryptocurrencies, affecting their popularization.

Security Concerns: Users have concerns about the security and privacy protection of cryptocurrency financial cards.

Market Volatility: The significant price volatility of cryptocurrencies affects their stability as a payment method.

Limited Acceptance: Compared to traditional payment methods, there are still not enough merchants accepting cryptocurrency payments.

To become a widely adopted product, the most important aspects are twofold: one is that the entire industry needs to continue to increase awareness of cryptocurrencies and financial cards, lowering the global cognitive barrier; the other is that relevant departments need to accelerate the establishment of a clear regulatory framework to increase confidence among users and merchants, which will help expand acceptance and encourage more merchants to accept cryptocurrency payments. The 4E platform will also contribute in various ways to help cryptocurrency financial cards achieve wider global adoption.

9. What role do cryptocurrency financial cards play in the overall development of the cryptocurrency payment industry? What changes will they drive?

Cryptocurrency financial cards play an important role in the overall cryptocurrency payment industry and have a multifaceted impact on driving the industry forward:

1. Promoting Mainstream Acceptance of Cryptocurrencies: Cryptocurrency financial cards make it easier for ordinary consumers to accept and use cryptocurrencies by providing a familiar and easy-to-use payment form (similar to traditional bank cards). This helps to increase societal recognition and trust in cryptocurrencies.

2. Bridging Traditional Finance and the Cryptocurrency Economy: Cryptocurrency financial cards can integrate the functions of traditional financial systems with the characteristics of cryptocurrencies, providing users with financial services that span these two areas. This integration helps to bring cryptocurrencies from their originally closed circles into broader economic activities.

3. Improving Cross-Border Payments and Remittances: Due to the decentralized nature of cryptocurrencies, using cryptocurrency financial cards for cross-border payments can significantly reduce costs and shorten processing times. This is a huge advantage for individuals and businesses that frequently need to conduct international transactions.

4. Driving the Development of Regulatory Frameworks: As cryptocurrency financial cards become more popular, relevant regulatory agencies will have to accelerate the development of more inclusive regulatory frameworks to adapt to the integration of cryptocurrencies with traditional financial systems. This may lead to clearer and fairer regulations, promoting the healthy development of the entire financial industry.

5. Stimulating Innovation and the Development of New Services: To better serve users of cryptocurrency financial cards, businesses may develop new financial products and services, such as more personalized financial management tools, investment products, and insurance services. These innovations can further drive progress in the entire financial industry.

In summary, cryptocurrency financial cards not only provide convenient new payment tools for individual users and businesses but also promote the maturity and development of the cryptocurrency industry while driving innovation and improvement in traditional financial services. This highlights the important role of cryptocurrency financial cards in promoting the integration of the digital economy and traditional finance, accelerating the modernization of global finance.