Apple Card Is About to Launch, but You Can't Buy Crypto With It?

Hello, this is Bitpunk. You've probably all heard the news that Apple is preparing a new credit card. However, the customer agreement guidelines it recently released include a restriction stating that you cannot buy cryptocurrency with the Apple Card. Apple took a strong stance, saying that if you ignore this and use the Apple Card to buy digital currencies, including cryptocurrency, your card could be suspended indefinitely.

Apple Card Is About to Launch

First, let's take a look at the Apple Card. Apple recently announced the launch of a credit card with an APR of 13–24%. It looks like the card will be released before long. The biggest features of the new Apple Card are that it has no annual fee and no transaction fees or penalties. The design also drew quite a bit of attention: unlike existing cards, the 16-digit number and CVV code are not shown on the card.

So when will the Apple Card launch? On the 30th of last month, Apple CEO Tim Cook said, "Thousands of people are currently beta testing the Apple Card every day," and projected an August 2019 launch for the Apple Card.

The Apple Card Customer Agreement Guidelines

If we had to pick the two biggest issues surrounding the Apple Card, they would be the restriction on purchasing "cash equivalents" such as cryptocurrency, as mentioned above, and the restriction on jailbreaking iPhones. Under the cash-equivalent restriction, the Apple Card cannot be used for transactions such as traveler's checks, foreign currency, lottery tickets, or casino chips. In addition, if you modify your device through jailbreaking or attempt to do so, it may be treated as a breach of the agreement and your card may be closed. These rules and guidelines aren't very different from the policies of existing card companies, but perhaps people had held out a glimmer of hope for the newly launched Apple Card?

The Long, Long Battle Between Apple and Cryptocurrency

Goldman Sachs is involved in this cryptocurrency purchase restriction, but in fact Apple has been fighting the cryptocurrency market for a long time. For example, in February 2014, it removed blockchain wallets and apps like Coinbase from the App Store. Then, after strong backlash from customers, it brought the apps back. Later, in February 2018, it even announced rules officially banning ICO and mining apps.

We'll have to wait and see what impact the new Apple Card has on the market, but rather than joining the big movement that cryptocurrency and blockchain are bringing, Apple seems likely to regulate it and grow its share in the existing payment solutions space. If Facebook's recently announced Libra project was about a centralized blockchain and cryptocurrency, Apple's move can probably be summed up as launching its own credit card that follows existing regulations.

That's all from Bitpunk.