Zengo Crypto Wallet App to Launch Debit Card

ZenGo, a mobile application designed for cryptocurrency management, is preparing to introduce a Visa debit card to the U.S. market. This development follows a similar announcement from Coinbase regarding the expansion of its own debit card services within the U.S. However, ZenGo distinguishes itself as a non-custodial wallet, granting users complete control over their digital assets.

Leaving cryptocurrency holdings on an exchange introduces a potential risk, as unauthorized access to your account could result in the transfer of your assets to another wallet. While exchanges implement security measures like email verification and two-factor authentication, users ultimately depend on the exchange’s security infrastructure.

ZenGo, along with other non-custodial wallets, empowers users to manage their own security, effectively functioning as their own cryptocurrency bank. This approach presents complexities in the creation of a debit card, as ZenGo is unable to directly send and convert cryptocurrencies on your behalf.

ZenGo is participating in Visa’s Fintech Fast Track program with the goal of launching its payment card in early 2021. Initially, the card will be available in the United States, but the company has future plans for international release.

Because ZenGo does not have access to information regarding your cryptocurrency holdings, you will need to convert your crypto to U.S. dollars prior to use. The mobile app will allow you to convert funds to fiat currency, such as USD, and load that amount onto your card. For frequent card users, an option to automatically convert a set amount each week will be available.

This process introduces an extra conversion step when compared to other cryptocurrency-based cards. According to ZenGo co-founder and CEO Ouriel Ohayon, “The challenge with automatic conversion, as seen with Coinbase, is the lack of control over which cryptocurrency is used for purchases. They either decide for you or require a single, overarching choice for all transactions.”

Furthermore, any cryptocurrency remaining within your ZenGo wallet will not be accessible through the debit card. This ensures that even in the event of card compromise, your digital assets remain secure.

ZenGo currently facilitates cryptocurrency purchases within the app through partnerships with MoonPay and Coinmama. The introduction of the debit card will provide both on-ramps and off-ramps, supporting both fiat-to-crypto and crypto-to-fiat conversions.