Bread application has announced its users will be able to buy bitcoins and pay with their credit cards on its platform. This announcement comes at a time when several large banks from around the globe decided to prohibit the purchase of bitcoin with their credit cards.
According to the announcement made by Bread, the bitcoins purchased with credit cards will be liquidated on the day of the purchase in the Bread wallet for smartphones. To enable this, Bread integrated with Simplex, a company that provides bitcoin exchange services.
The integration of Simplex is very important for the Bread app, because the users will not have to copy and paste the wallet addresses or have to switch between apps, everything will be integrated seamlessly.
The amount of money that can be spent to purchase bitcoins this way is limited to 20,000 dollars per day and 50,000 dollars per month.
The announcement did not provide any details about the commissions for the purchase of bitcoins with credit cards. Nonetheless, the company says that aspect is not the most important one for its users, since they are concentrated on the speed of the transactions, which enables them to make quick purchases and avoid possible losses due to the high volatility of the most popular cryptocurrency in the world.
The company points out the immediate liquidation of the purchase and assures that, despite the fact the payment is made with traditional banking solutions, the users will have their purchased bitcoins available in their wallets in less than 24 hours. This method of operation is different than the one used by cryptocurrency exchanges such as Coinbase. Normally, it takes up to five days for the bitcoins to arrive to the user’s wallet after the payment from a banking account is made.
Bread is one of the most downloaded applications for the iOS operating system and this new option to buy bitcoins and pay with credit cards is going against the current, since the major banking institutions from Wall Street banned this way of purchasing bitcoins.
In less than a week, JPMorgan Chase, Bank of America, Lloyds Bank and Citigroup, all of them large players in the banking sector, decided to suspend the possibility to purchase bitcoins with their credit cards, due to the high volatility of the cryptocurrency market.
For this reason, the decision of Bread demonstrates confidence in the cryptocurrency ecosystem and goes against the traditional banking institutions. Moreover, it guarantees high standards of security since the bitcoins are always in the user’s wallet, without having to go through custody accounts, such as cryptocurrency exchanges. This makes the coins less vulnerable to hacker attacks and theft. At the end of January, Coinbase, the biggest cryptocurrency exchange in Japan, was attacked by hacker and around 530 million dollars in NEM coins were stolen.