Title: Gnosis Card: Bridging the Gap Between Cryptocurrency and Traditional Payment Methods
Introduction:
The world of cryptocurrency has often received criticism for its exclusivity and focus on speculators and crypto-savvy individuals. However, advocates believe that the underlying decentralized technology has the potential to benefit society as a whole. Gnosis, a prominent blockchain project, aims to demonstrate the broader applicability of web3 by bridging the gap between self-custodial crypto wallets and traditional payment methods like Visa. Their latest product, the Gnosis Card, is a Visa card that allows users to spend funds from their self-custody wallets wherever the payment method is accepted.
Gnosis Card: Expanding Crypto Accessibility
Gnosis Pay, which recently launched at the Ethereum EthCC community conference in Paris, aims to reach a wider audience beyond the crypto community. Dr. Friederike Ernst, co-founder of Gnosis, emphasizes the need to erase the boundary between cryptocurrencies and the real world. The goal is to enable people to use real-world money in crypto and vice versa.
Overcoming Challenges in the Cryptocurrency Industry
The implosion of FTX revealed the misappropriation of client funds, causing a seismic shift in the cryptocurrency industry. Users have been moving their assets from centralized exchanges to self-custody wallets such as Metamask and Ledger. However, there has been a lack of convenient options to spend self-custodial assets in the real world. Ernst acknowledges that the crypto industry is currently dominated by tokens that have limited usability.
Gnosis Card’s Global Expansion
The Gnosis Card will initially launch in the UK and EU, with plans to expand to Brazil, Mexico, Singapore, and Hong Kong. The Gnosis Pay team aims to launch in the US by the end of Q3 and intends to collaborate with MakerDAO to offer the USD-denominated Dai stablecoin as a credit card option.
Unit Economy and Revenue Generation
The Gnosis Card is priced at €30, with €10 covering the cost of producing and distributing the physical card. The surplus funds will be allocated to infrastructure engineering and compliance. Transaction fees will generate revenue, and increased card adoption will drive demand for Gnosis’s GMO token, benefiting the overall blockchain ecosystem.
The Future of Cryptocurrency-Fiat Integration
Dr. Ernst envisions a more favorable future where cryptocurrencies enable truly peer-to-peer transfers. While acknowledging that technology needs time to mature, she argues that the user experience provided by true peer-to-peer trust is superior to the current financial system. However, it requires patience and continuous development to achieve this vision.
Collaborations and Partnerships
Gnosis Card’s success is underpinned by strategic partnerships and integrations. Monerium, the company offering the euro-denominated regulated stablecoin EURe, plays a crucial role in connecting users’ wallets to International Bank Account Numbers (IBANs). Fractal, a decentralized identity startup, is another technical partner assisting with the know-your-customer (KYC) process.
Lowering the Barriers for Fintech Startups
Gnosis Pay, in collaboration with Fractal, offers a suite of developer tools that simplify the process of creating customized payment cards for crypto wallets. This solution reduces the high costs associated with starting a fintech business and allows for quicker international expansion. The open-source nature of Gnosis Pay fosters collaboration and encourages more fintech companies to enter the market.
Enhancing Security and Compliance
Gnosis Pay relies on the Safe smart contract wallet infrastructure and complies with Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) regulations. The integration of Layer 1 and Layer 2 solutions ensures compliance while providing a seamless user experience. The technical complexities are abstracted from users, allowing them to enjoy a traditional credit card experience.
Expanding the Potential of DeFi
Gnosis Pay’s partnerships and integrations contribute to scaling the decentralized finance (DeFi) sector. By enabling interoperability and making the ecosystem more accessible, Gnosis Pay aims to drive innovation and foster the growth of the DeFi space.
Conclusion:
The Gnosis Card and Gnosis Pay project seek to bridge the gap between cryptocurrency and traditional payment methods, making crypto more accessible for everyday transactions. By expanding globally and collaborating with strategic partners, Gnosis aims to revolutionize the financial system and provide a seamless user experience. Despite the challenges and complexities involved, Gnosis Pay paves the way for increased adoption of decentralized technologies and fosters the growth of the fintech industry.
Engaging Additional Piece:
Title: How Gnosis Pay and the Gnosis Card Revolutionize Financial Systems
Introduction:
The Gnosis Card and Gnosis Pay project represent a crucial step towards widespread crypto adoption and the integration of decentralized technologies in traditional financial systems. By addressing the limitations of the crypto industry and leveraging strategic partnerships, Gnosis aims to create a seamless user experience that brings the benefits of cryptocurrencies to everyone.
Breaking Down Barriers for Everyday Crypto Use
Historically, one of the significant barriers to crypto adoption has been the limited usability of cryptocurrencies in real-world transactions. Gnosis Card aims to erase this divide by enabling users to spend their self-custodial assets anywhere Visa is accepted. By bridging the gap between self-custody wallets and traditional payment methods, Gnosis Card brings cryptocurrencies closer to mainstream usage and promotes financial inclusivity.
Driving Financial Innovation and Collaboration
Gnosis Pay, with its suite of developer tools, empowers crypto wallets to create their own customized payment cards. This not only generates an additional revenue stream for Gnosis but also allows other wallets to benefit from their technology. By collaborating with Fractal and other technical partners, Gnosis Pay lowers the barriers for fintech startups, encouraging more innovative financial solutions to enter the market.
The Power of Compliance and Security
Gnosis Pay’s commitment to compliance is demonstrated through its partnerships with Monerium, ensuring regulatory adherence with the euro-denominated EURe stablecoin, and Fractal, securing users’ verified identities through a private but permissionless federation of nodes. The emphasis on data privacy and security safeguards users’ information while allowing regulatory authorities to access required information transparently and lawfully.
Unlocking the Potential of DeFi
Gnosis Pay’s integration of Layer 1 and Layer 2 solutions within the DeFi ecosystem drives scalability and innovation. By facilitating instant transactions through compliance checks on Layer 2, Gnosis Pay opens up new possibilities for peer-to-peer transfers and increases transaction volumes. This seamless integration of DeFi and traditional financial systems brings us closer to a future where financial services are accessible, efficient, and truly decentralized.
Conclusion:
Gnosis Pay and the Gnosis Card are pioneering solutions that revolutionize the integration of cryptocurrencies into real-world transactions. By addressing the limitations of the crypto industry, fostering collaboration, and enhancing compliance and security measures, Gnosis paves the way for a future where cryptocurrencies and traditional financial systems seamlessly coexist. These developments not only foster financial inclusivity but also drive innovation and unlock the full potential of decentralized finance. As Gnosis Pay expands globally, it has the potential to reshape the financial landscape and create new opportunities for individuals and businesses worldwide.
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The world of cryptocurrency has often been criticized for being exclusive and catering primarily to speculators and people with crypto knowledge. Despite this, many advocates believe that the underlying decentralized technology has the potential to benefit society as a whole.
gnosis, a well-regarded blockchain project in the developer community, is working to demonstrate the broader applicability of web3 by bridging the gap between self-custodial crypto wallets and traditional payment methods like Visa. Its newest product, the Gnosis Card, is a Visa card that allows users to spend their funds from self-custody wallets anywhere the payment method is accepted.
While Gnosis Pay launches at the main Ethereum EthCC community conference in Paris, the goal is to reach a broader audience beyond the crypto community, according to Dr. Friederike Ernstco-founder of Gnosis.
Since the FTX implosion revealed the misappropriation of client funds, there has been a seismic shift in the cryptocurrency industry, with users moving their assets from centralized exchanges to self-custody wallets such as metamask and Ledger.
But for a long time, there was no convenient way to spend self-custodial assets in the real world. The crypto industry, Ernst admitted, is currently dominated by “all these tokens that don’t work anywhere else.”
“We have always had this very strong line between cryptocurrencies and the real world. We are trying to erase this little by little so that people can use their real world money in crypto and use their crypto to pay for things in the real world,” he said.
The Gnosis Card will initially launch in the UK and EU, with plans to expand to Brazil, Mexico, Singapore and Hong Kong. Gnosis Pay is aiming to launch in the US by the end of Q3 and will work with MakerDAO to offer its USD-denominated Dai stablecoin as a credit card option.
Gnosis already has the unit economy of the card figured out. The Gnosis Card will sell for €30, while the cost of producing and distributing the physical card is €10, with the surplus going to infrastructure engineering and compliance. Transaction fees will generate revenue, and card adoption will drive demand for Gnosis’s GMO token, which will eventually boost its blockchain ecosystem.
Spend crypto as fiat
When asked why the financial system needs the cryptocurrency game, Ernst argued for a more favorable future where cryptocurrencies can enable truly peer-to-peer transfers, but the technology needs time to mature.
“You need to give people like us some time because we actually try to build these things. In principle, the user experience that true peer-to-peer trust will provide is superior in every way to what we currently have, and I think we need to get to a point where the user really feels this.”
Unsurprisingly, a project like Gnosis Card requires significant heavy lifting in technology development, integration with the existing financial system, and compliance.
“On the legacy side, if you pay somewhere it seems very simple, but your payment actually goes through many hands. You need contracts with all of these [parties] to complete the transaction. You must become a Visa member, which is us; we are also becoming MasterCard members,” Ernst said.
One of the key partners driving the Gnosis card is Monerium, the company that offers the euro-denominated EURe, the only regulated stablecoin in the European Union. Monerium allows users to connect their wallets to an International Bank Account Number or IBAN, a standardized system of identifying bank accounts across borders that is widely used in Europe.
When users send money from a bank account to an IBAN linked to a wallet, the payments are minted as EUR on blockchains, such as Ethereum and Gnosis, and appear in their wallets. By contrast, when users sign for payments from their wallets, the EURes are burned and sent as euros to their bank accounts.
Scaling fintech with crypto
Gnosis is also launching Gnosis Pay, a suite of developer tools that allow crypto wallets to create a version of their Gnosis Card for users without jumping all the hoops to build an online payments system. MetaMask, for example, could issue a MetaMask card simply by using the Gnosis Pay tools and APIs.
The offer provides another source of income for Gnosis. When you allow other wallets to issue their own in-house cards, you also get a share of the revenue.
Starting a fintech business has become too expensive, argued Julian Leitloff, co-founder and CEO of decentralized identity startup Fractal, one of Gnosis Pay’s technical partners. But a solution like Gnosis Pay will eventually help lower the bar for entering the field, he said.
“Fintech is supposed to be international, but all those companies, what they do is: we launch in Germany, and then we launch in France, then we launch in Portugal, so it’s kind of little by little until they’re a little bit international,” he said. “And you have to use what the licensed bank gives you, which are mostly their own products.”
“But by using the stack—Monerium accounts, Gnosis credit cards, Fractal KYC, and Aave savings accounts—you get a complete fintech product at a small fraction of the cost, and allow others to connect to it, because it’s open source and without permission,” he continued. “Imagine how much less cost we will have and how many more fintech companies you will have.”
Make DeFi compatible
Fractal is helping Gnosis Pay with their know-your-customer process. When a user sets up a Monerium bank account and wants to apply for a Gnosis card, Fractal has a system that allows users to have a chain message signature and share their verified identity with Gnosis.
The challenge, according to Leitloff, lies in complying with data privacy regulations, which is why he has been working on a solution that distributes data among a private but permissionless federation of nodes, meaning no entity controls the chain of blocks. Unlike IPFS, a popular distributed file storage protocol, this allows Fractal to “secure data overrides and therefore comply with the right to be forgotten.”
In other words, the solution allows users to control their own data while granting time-limited access to the reporting entity as required by law. A reporting entity is under the scrutiny of the financial regulator, which may request information such as the party behind an IBAN number.
Along with its partners, Gnosis Pay can also detect fraudulent activity. The payments solution is based on Safe, a popular smart contract wallet infrastructure that raised $100 million from investors, including Tiger Global after leaving Gnosis last year. Each user has a secure account in the Gnosis chain at Layer 1 and another at zkEVM, the Layer 2 Ethereum scaling solution created by Polygon, similar to having a savings account and a spending account, Ernst explained.
When funds go to the L2 account, they are screened for Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) through compliance partners. This means that everything that arrives at L2 is approved and can be spent instantly through the Visa network. Users have full control of both safes and can transfer back from L2 to L1 at any time. That is, L2 works both to ensure compliance and to allow the network to process a large volume of payments, which is essentially the purpose of L2 solutions.
But of course, all these technical complexities are “abstracted from the user,” Ernst said, since the goal is to provide a seamless experience that feels like using a traditional credit card.
Gnosis launches Visa card that lets you spend self-custody crypto in Europe, soon US and Hong Kong
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