Bitcoin-based credit card coming in October?

Bitcoin, the popular Internet-based digital currency, may be making its debut in the real world in as early as two months' time, a tech site reported.

 

Exchange service BitInstant is working on a Bitcoin-funded card that may work like standard debit/credit card, according to CodingInMySleep.com.

 

"The card will function as a standard debit/credit card and should be accepted anywhere that accepts MasterCard, even internationally," the site said, citing an Internet Relay Chat interview with BitInstant co-founder Charlie Shrem.

 

Shrem, whose firm allows speedy fund transfers between Bitcoin and currencies, said the first 1,000 cards may be given away for free, but subsequent cards will cost about $10.

 

He also said funding the card will cost roughly a 1-percent fee.

 

Each card will bear a QR code on the front and a printed address on the back for funding.

 

Users will have an option to hold their card balance in BTC until the card is used to make a payment or withdrawal.

 

Transactions under $1,000 will be funded after the first confirmation, not the standard six. Transactions over $1,000 were not discussed.

 

Shrem was quoted in the report as saying the cards themselves will be issued by "a major international bank" that BitInstant has teamed up with.

 

"This of course means that the traditional AML or other local laws & regulations for obtaining a bank account, such as proof of identity, will apply as per your jurisdiction," the site said.

 

A separate article on tech site CNET noted Bitcoin in June 2011 was dragged in a controversy when Senators Charles Schumer (New York) and Joe Manchin (West Virginia) wrote Attorney General Eric Holder, noting Bitcoin's role in an online marketplace known as "Silk Road," that allows customers to buy illegal drugs. — TJD, GMA News