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How to Spend Cryptocurrency in Australia 2022

In this article, we will tell you about how to Spend Cryptocurrency in Australia in 2022

Cryptocurrencies.  Love ’em or hate ’em, they are here to stay.  They have changed how we think about assets, investments and spending.  The cryptocurrency market has doubled in value since 2018, and twenty percent of Australians have purchased at least one type of cryptocurrency since its inception.

While many people have a longer term attitude to cryptocurrencies (the ‘HODLers’), others of us are keen to cash in our profits.  If you want to spend your cryptocurrency in Australia in 2022, there are four ways to do it.

Ways to spend crypto:

  1. Wallet-to-wallet
  2. Crypto-enabled credit/debit cards
  3. PayPal – if you have a USA PayPal account 🙁
  4. Gift cards

1. Wallet-to-wallet payments

A wallet-to-wallet payment is when you transfer cryptocurrency from your wallet directly to a store’s cryptocurrency address/wallet.  A wallet is a digital ‘place’ that can store cryptocurrencies.  A wallet is hosted on an exchange like Coinbase or is a ‘hard’ wallet, where cryptos are stored safely offline.

Different cryptocurrencies need different wallets, you cannot store two different cryptos in the same wallet (with some exceptions).

A simple wallet-to-wallet payment between friends involves the receiver sharing their wallet address with the sender.  The sender uses software linked to their hard wallet, or logs into their exchange account, to transfer the agreed amount of crypto from their wallet/address to their friend’s address.  After a few minutes, the receiver will be able to see the new amount in their own wallet.

If you trust the store, a wallet-to-wallet payment can be a simple and effective means of paying for goods and services with cryptocurrency.  The merchant doesn’t need to have any special system set up, so this type of payment should be possible for any business that holds (or wants) cryptocurrency.

This is the most common method for large crypto purchases such as real estate and cars.

However, wallet-to-wallet payments do require a degree of trust.  If the merchant makes a mistake with their address, or if you enter the wrong address, your funds will be lost forever!  Also, because crypto wallets are anonymous, there is no way for you to know that you are sending your payment to the right place.  Also be sure to check with the merchant about how they handle refunds of cryptos before making any big payments.

2. Crypto-enabled credit and debit cards

At the time of writing there are only two crypto-card operators that allow Australians to apply; Crypto.com and Wirex (although you could be forgiven for thinking there are heaps more!)

Crypto.com issues a range of prepaid Visa debit cards which can be funded with fiat currency and cryptos including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Ripple (XRP).  Note that the funds are not held on the card as cryptocurrencies, but are converted into fiat currency when you add them to the card.

Wirex issues a card that is linked to a digital wallet.  It supports fiat and cryptocurrencies.  Warning: definitely check the Wirex reviews on Trustpilot before signing up to Wirex.

Two Australian-made cards are rumoured to be (re)launched soon:  the Coinjar Debit Card and the Cryptospend.com.au card.

For more info on cryptocurrency debit and credit cards for Australians, see our other post: https://spendcrypto.com.au/crypto-cards-for-australians/ 

How to Spend Cryptocurrency in Australia in 2022
Photo by freestocks on Unsplash

3. PayPal

PayPal is allowing US citizens to fund their accounts with crypto.  This lets them spend their crypto anywhere PayPal is accepted as a payment method.  Unfortunately Australian PayPal accounts don’t have this option yet and there is no publicly available information about when this might be introduced in AU (if ever!).

If you happen to have a US-based PayPal account you should be able to spend your crypto funds anywhere online, including with Australian merchants.  Check the exchange rates first though!

4. Gift Cards

Wouldn’t it be great to be able to buy gift cards using cryptocurrency, then spend them whenever you want in Australian shops?  Yup!

Crypto-purchased gift cards are technically possible right now.  Unfortunately, we aren’t aware of any merchants who publically offer gift cards that you can purchase with crypto.

The volatility of cryptocurrencies leaves both merchants and consumers exposed to risk from price movements, so it seems unlikely that gift cards will be widely available as long as crypto prices remain volatile.   However, it doesn’t hurt to ask; if you know a crypto-friendly merchant you could always ask them if you could purchase a gift card or voucher using your favourite coin.  They might just say ‘yes’!

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