Cryptocurrency gift cards offer a simple on-ramp for potential crypto adopters who may feel intimidated by other purchasing methods.
Swiss daily Tages-Anzeiger reports that Manor, the country’s largest department store chain, has begun selling bitcoin gift cards in 59 locations across Switzerland. This move signals growing crypto adoption in the country: bitcoin gift cards add another channel to the expanding cryptocurrency ecosystem in Switzerland. Retail giant Valora has also announced plans to sell BTC vouchers and gift cards through its kiosks beginning April 1.
The BTC vouchers, branded “Cryptonow,” were developed by Värdex Suisse, a Swiss cryptocurrency financial services firm. Värdex is a subsidiary of major Swiss exchange Bitcoin Suisse and operates the country’s largest network of crypto ATMs, local OTC points and, now, is innovating in the crypto gift card space by distributing these products through its official reseller network in Switzerland and Liechtenstein.
Simon Grylka, Värdex’s head of operations, presents Cryptonow as an easy entry point for people who are curious about cryptocurrencies but feel deterred by other acquisition channels. The voucher, he says, is comparable to owning digital gold. Cryptonow gift cards will be offered in three denominations ranging from 100 to 500 Swiss francs (approximately $107 to $535).
The launch of Värdex’s BTC gift card coincides with continued growth in Switzerland’s crypto and blockchain sectors. According to Cointelegraph, the 50 leading blockchain firms in the country’s so-called crypto valley have increased in value by more than 680% since mid-2020.
That said, merchant acceptance of BTC remains limited, so Cryptonow holders currently have a narrow range of spending options. Card recipients can redeem the balance through an exchange or sell the bitcoin loaded on the card using one of the roughly 70 Värdex-operated BTC ATMs.
While Cryptonow offers a convenient alternative to setting up a wallet or navigating an exchange directly, fees charged by retailers and distribution partners mean the product today functions primarily as a novel way to acquire bitcoin rather than a mainstream payment method. Its distinctive value lies in being among the first products to ship preloaded cryptocurrency gift cards, rather than traditional gift cards that only allow redeeming fiat balances for merchandise.