Just days after Metamask and Mastercard teamed up to launch a crypto debit card pilot program in the United States, cryptocurrency advocates aren’t having it. A large section are criticizing the move, saying it undermines the spirit of cryptocurrency.
With a debit card, users can spend directly from their Metamask wallets, simplifying cryptocurrency transactions. They can convert their cryptocurrencies to fiat currency in real time as they transact through Linea, a fast layer-2 network of Ethereum.
Disgruntled cryptocurrency stakeholders raise concerns
The launch of Metamask debit cards has raised serious concerns among cryptocurrency users. They argue that the card structure negates decentralization and financial freedom, which are the core pillars of cryptocurrencies.
According to disgruntled crypto users, the card will lock its users into traditional banking systems. “Wasn’t the whole spirit of crypto providing an alternative system to fiat currencies?” asked Mona Ou, a crypto advocate, highlighting the contradiction.
The partnership with Mastercard is seen as an attempt to undermine the independence on which cryptocurrency is based.
There are also concerns about security, especially when it comes to centralized systems. Blockchain analyst Johanna Castellanos called for more advanced security measures rather than relying on what is currently in place. Johanna noted that the Metamask wallet has been repeatedly attacked.
The cost associated with the debit card has also been mentioned. There are concerns that the swap fee could be high, around 6-9%. Since the card will not be regulated, it will leave Metamask and Mastercard with hefty fees to reap while hurting users, contrary to the promise of cryptocurrencies.
“The Metamask Card beta gives people more freedom to spend cryptocurrency,” said Lorenzo Santos, Senior Product Manager at Consensys. “The Metamask Card represents a major step in removing the friction that has traditionally existed between blockchain and real-world commerce.”
