By
Chimamanda U. Martha
March 27th, 2024
BitStamp offers to exchange gold only for US dollars now but it is going to add a bitcoin-for-gold option soon.
European bitcoin exchange BitStamp has officially announced a new way to withdraw funds. Now EU customers can request to purchase physical gold with their funds. As for now gold can only be exchanged for US dollars. But BitStamp is planning to add a bitcoin-for-gold option soon.
The official press release states: “Gold has proved to be a timeless and exceedingly valuable source of capital preservation due to its unwavering value. Additionally, gold has always been an efficient hedge against the inflation and currency risks.”
BitStamp has called bitcoin a “digital gold” and partnered with Moro & Kunst d.o.o. to bring bitcoin and gold a little bit closer.
Moro & Kunst Ltd. was founded as an art brokerage company in 1993. For these years it has turned into a major bullion trader and took a strong position in global precious metals markets of Germany, Switzerland, Austria, Croatia and Slovenia.
The company is justly proud of its close cooperation with the World Gold Council – together they contribute to the development of the global gold market. Moro & Kunst sees its mission in creating an international trade environment characterized by cooperation in development and investment as well as by transparent and ethical business practices.
The idea of bitcoin-gold trade can help making the digital currency more mainstream. Those, who are used to sticking to gold as the most reliable source of capital preservation, can get a better look at alternative currencies. Such cross-transferable exchanges as Bitstamp can provide the growth of competing markets and make “gold bugs” start adopting and using more bitcoin.
In 2015 BitStamp already improved its services by launching a pre-paid debit card that can be loaded with bitcoin. The exchange’s customers got a possibility to receive their prepaid debit virtual or plastic cards with the balance denominated either in euros, British pounds, or American dollars.
The customers, who order BitStamp’s debit cards, first get a virtual one that can be used only at online websites. A plastic card can be ordered for $10. BitStamp says that if customers want to convert their virtual cards into physical ones, the card will be sent within 10-15 business days along with activation details and instructions. BitStamp fulfilled the prepaid debit cards program in cooperation with the European and Latin American payment processor AstroPay.
The BitStamp’s card stipulates three stages of verification, each with its own spending limit. The first stage requires no additional know-your-customer(KYC) verification and allows transactions up to €2,500 worth of annually.
The spending limit of the second and the third stage is €60,000 and €125,000, respectively. The third stage requires government ID, proof of residence, and a certified copy of the source of funds document. ATM access and card-to-card transfers are allowed only on two last stages. BitStamp also offers to go through additional verification procedure to raise the annual loading limit.