The TokenCard (TKN) is a cryptocurrency with a billion-dollar idea based upon an old-fashioned technology that everybody uses.
The old-school technology is the humble plastic card. The TokenCard allows you to store Ethereum (ETH) and ERC20 tokens in a Token Contract Wallet. The wallet is accessible through a debit card.
This is a billion-dollar idea because you could theoretically swipe the card at cash registers and ATMs. That means you could use TokenCard for brick and mortar purchases. You could conceivably make withdrawals or deposits through automatic teller machines (ATMS) with TokenCard.
The TokenCard’s Billion-Dollar Idea
The potential market for TokenCard is vast because debit cards are one of the most popular payment technologies on Earth. There were 867 million MasterCard (NYSE: MA) debit cards worldwide and 210 million MasterCard debit cards in the United States in 2nd Quarter 2018, Statista calculated.
Just one debit card brand has close to one billion users worldwide. Therefore, marrying debit cards to an altcoin is a logical way to facilitate cryptocurrency and blockchain use.
There are some serious barriers to TokenCard’s business plans. The world’s dominant credit card brands MasterCard and Visa (NYSE: V) are highly resistant to the idea.
Visa shutdown several cryptocurrency debit cards supported by WaveCrest in January 2018. Visa pulled the plug because cards from companies like TenX and BitPay apparently violated its policies.
Does MasterCard Hate Cryptocurrency?
MasterCard CEO Ajay Banga has again denounced cryptocurrency as junk. Banga believes cryptocurrency is too wild to be a medium of exchange, The Economic Times reported. Banga made similar statements last year.
“I think cryptocurrency is junk,” Banga said during the New India Lecture. “The idea of an anonymized currency produced by people who have to mine it, the value of which can fluctuate wildly – that to me is not the way that any medium of exchange deserves to be considered as a medium of exchange.”
MasterCard prepares for the Cryptocurrency Economy
Intriguingly, MasterCard is hedging its bets on cryptocurrency. The company received a US patent for a method of linking blockchain-based assets to fiat currency accounts.
United States Patent 10,042,946 provides a “description of systems and method for managing fractional reserves of blockchain currency,” ZDnet reported. MasterCard is developing its own cryptocurrency while Banga is disparaging altcoins.
An obvious use for such systems is supporting payments made in an official cryptocurrency. Some central banks including the People’s Bank of China (PBOC) have plans for national cryptocurrencies. MasterCard is preparing for that inevitability.
Another contingency MasterCard is preparing for is widespread use of altcoins like Ethereum. MasterCard is preparing for the day that some government or central bank issues an ERC20 token.
A Vast Opportunity for the TokenCard
A national cryptocurrency or MasterCard accepting ERC20 tokens would be a huge opportunity for TokenCard.
There would suddenly be millions of ordinary people with a need to spend cryptocurrency on a day-to-day basis. Since digital wallets are insecure and not always secure, those people might use cards.
For example, America’s largest retailer Walmart (NYSE: WMT) has refused to accept NFC payment solutions like Apple Pay and Google Pay. A debit card might be necessary to spend cryptocurrency at Walmart and other retailers.
A national cryptocurrency in a major economy like the USA, the UK, or the People’s Republic might increase TokenCard’s (TKN) value. MasterCard or Visa might place an order for millions or tens of TokenCard products.
Other potential users of TokenCard, would be governments, major banks, retailers and big corporations. Governments might use TokenCard to distribute welfare, social security, or basic income benefits to citizens. An incredible opportunity for TokenCard would be a government or central bank issuing a cryptocurrency card to every citizen.
Some Other Uses for the TokenCard
The TokenCard technology has many potential uses beyond payment. Some of those uses are potentially lucrative.
An obvious use of TokenCard would be identification. A Token Contract can theoretically store a permanent ID or an image of document in the blockchain.
Officials would access that document or information with a card reader. They might use such IDs for licenses, the military, security, and insurance. You would swipe the TokenCard to get access to government offices, police stations, or military bases.
A related use for TokenCard would be to store medical or insurance records in the blockchain. A Token Contract would protect the records. A Token Card would provide access to the records.
One advantage to TokenCard is that debit cards are a simple technology most people are familiar with. The average person knows how to swipe a card, little education would be necessary.
A TokenCard could be used to store crypto assets such as equities, bonds, stocks, annuities, or insurance policies. Another use would be to provide fast access to documents such as titles, contracts, loan paperwork, financial records, licenses, mortgages, deeds, and insurance policies.
Therefore, governments would be the biggest potential users of the TokenCard. The potential market for this product is vast.
Is the TokenCard a Good Cryptocurrency?
The TokenCard (TKN) is a respectable cryptocurrency. The TKN achieved a Coin Price of 50¢ on 16 August 2018.
That led to a Market Capitalization of $12.121 million and a 24-Hour Market Volume of $67,862 on the same day. There was a Circulating supply of 24.189 million TKN altcoins and a Total Supply of 39.407 million TKN ERC20 Tokens on 16 August 2018.
Therefore, Mr. Market realistically valued the TokenCard. The TKN token has some good attributes for a cryptocurrency. It is part of Bancor’s (BNT) liquidity network. The TKN altcoin is convertible into a wide variety of ERC20 tokens.
As an ERC20 token, TKN is compatible with a wide variety of Ethereum blockchain platforms and solutions. This gives it the potential to become a standard solution for companies planning to utilize Ethereum.
How Retailers Might Use the TokenCard
For example, Walmart or Kroger (NYSE: KR) might use TokenCard’s technology to accept Ether payments at cash registers. Another use Kroger would have for TokenCard is offering ERC20 tokens as rewards points for its customers.
Millions of Americans take part in Kroger’s rewards point program. Kroger rewards point participants swipe a card to accumulate points that can purchase a discount on petrol or diesel fuel.
An obvious use of TokenCard would be to accumulate ER20 Tokens (a Kroger Coin?). Kroger would reward loyal customers with the Tokens.
The Power of Plastic
Token; the organization behind TokenCard, is a very transparent company based in London. Therefore, Token has a base in one of the world’s great financial centers. Refreshingly, Token reveals its team members’ identities online.
If you are looking for a good speculative investment in cryptocurrency backed by potentially useful technology TokenCard is worth a look. By harnessing the power of plastic Token can tap vast market.