A key challenge for any crypto holders across the continent is that they can’t seamlessly use their cryptocurrencies to make purchases since few merchants accept crypto.
6DOT50, a South African startup, is changing that.
The startup has created a system that relies on its Digital Rands Money Vouchers. These vouchers act as a bridge between crypto and fiat facilitating transactions either way.
Here is how it works.
If someone wants to make a purchase for an item at an accepted merchant, all he needs to do is to purchase a voucher using crypto. The service accepts:
- Litecoin
- Ethereum
- Bitcoin Cash
- Dash
As reported by Disrupt Africa, it takes less than 5 minutes before the crypto is converted to vouchers that are accepted across 40, 000 stores and online retai in South Africa.
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SEE ALSO: South Africa Property Company Now Receiving Rent Deposits in Crypto, Tenants to Keep Any Gains
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Some of the outlets include:
- Shoprite
- Checkers
- Zapper
which are major retailers in the country.
According to the startup’s CEO, Warren Venter, the system works in two ways:
- Providing cash-based customers with an easy on-ramp to hold a digital store of value and enjoy safe and convenient digital payments
- Provides cryptocurrency enthusiasts an easy off-ramp, making crypto as acceptable as bank card payments across the merchant network
Unlike most digital asset providers, 6DOT50 is not regulated since there is no need for KYC as they do not take deposits. Users only require a transactional account which the service offers free registration and using a mobile number.
6DOT50 has agreed settlement fees with all its partner merchants. When a user makes a purchase, the sevice pays the required amount to the respective merchant but deducts the settlement fee.
The service is also planning to launch digital service dollars.
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RECOMMENDED READING: 3 Out of 15 Finalists of the Global CBDC Challenge by World Bank, IMF, UN, are Working on the Ghana, Nigeria, and South Africa CBDCs
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