The co-founder of Ethereum, Vitalik Buterin, claims that [layer 2 rollups will soon cause transaction prices to drop](https://cointelegraph.com/news/vitalik-crypto-payments-will-make-sense-as-tx-costs-fall-to-mere-cents-kbw-2022) to fractions of a cent, making cryptocurrency payments "make sense" once more.

The Cointelegraph team reported on Buterin at Korea Blockchain Week (KBW) saying that blockchain data compression is the last obstacle to scaling down transactions to fractions of a cent.

KBW, Asia's largest blockchain event, started yesterday and runs until August 14 at the Grand Intercontinental, Seoul.
 
He said an example of the "solid work happening" is Optimism's layer 2 scaling solution for Ethereum. It has demonstrated results lowering the amount and cost of data in blockchain transactions by introducing zero-byte compression.

Buterin added that, although serving mainly as a speculative store of value, the primary use of [Bitcoin (BTC)](/coins) described in its white paper from 2008 was to offer a "peer-to-peer electronic cash system" that was less expensive than conventional payment methods.

He said that although this remained true until 2013, it was no longer the case by 2018 as usage grew and blockchain transactions became prohibitively costly.

According to the co-founder of Ethereum, scaling solutions, like the Lightning network in the case of BTC, will eventually lower the prices to fractions of a cent, allowing BTC and other currencies to serve this use case once again.

## Use Cases for Cryptocurrency Transactions

Buterin gave examples of where inexpensive crypto transactions will be beneficial.

He pointed to "lower income nations or regions where the present financial system is not very successful", saying it would provide residents with access to crucial payment structures via the internet, which is already being used despite the expense of international remittances.

In the context of Ethereum, he noted that inexpensive crypto transactions would aid in developing Web3 account management systems, non-financial applications such as domain name system (DNS) servers, and humanity proof of attendance protocols.



Crypto Payments to "Make Sense" with Layer 2 Growth 

Gucci, an Italian luxury brand, announced on Monday that it would [accept apecoin as a payment method](https://cointelegraph.com/news/gucci-becomes-first-major-brand-to-accept-apecoin-payments). The payment mode is currently only accessible in the United States because not many countries allow crypto to be accepted as a payment method. The brand is partnering  with Bitpay to make the payment option available. Bitpay is a cryptocurrency payment processing firm that has worked with numerous well-known companies to make cryptocurrency payments possible.

It is, however, Gucci's 12th cryptocurrency that they accept as payment. In May, the company announced plans to accept 12 crypto assets as payment options in 111 stores across North America. Bitcoin, Ethereum, Dogecoin, SHIB, Litcoin, Wrapped BTC, USDT, USDC, and many more were on the list.

Gucci has emerged as one of the few large companies to engage with cryptocurrency aggressively. In February, the Italian brand launched the "SUPERGUCCI" NFT collection in collaboration with the vinyl toy brand SUPERPLASTIC. The following month, it released the "Gucci Grail" NFT collection, targeted at owners of top NFT projects like the [BAYC](/news/article/bored-ape-nft). The brand is profiting from the current excitement in the cryptocurrency and NFT markets.

## Apecoin community reactions

ApeCoin's official Twitter page responded by stating that they are thrilled that Gucci will be the first large company to accept the cryptocoin for in-store transactions. Everyone is excited about this move because it is a community-driven initiative. As a result, it's not surprising that Twitter is flooded with tweets concerning Gucci's moves. Users have been seeing that more corporations are adopting the Web3 environment, and it appears that Gucci is ready as well.

Apecoin (APE) has experienced a rise in its general acceptance as a payment method. As the market has gained traction and the cryptocoin has witnessed some favourable developments, it has increased by about 50% in the previous month. It is currently trading at $7.32. However, the coin is still nearly 75% down from its ATH.



Gucci now accepts ApeCoin as payment

Israeli authorities implemented further restrictions on cash payments to combat illegal activity and promote the use of [digital payment methods](/news/article/mastercard-crypto-asia).

Due to the Law for the Reduction in the Use of Cash, which came into effect in January 2019, businesses and consumers in Israel are no longer allowed to make payments in cash.

People and businesses are encouraged to use digital payments, making it easier for the government to track illegal activity, tax evasion, and money laundering in the country's black market and elsewhere.

According to the Israeli Central Bank, 6,000 New Israeli Shekels (NIS) for business transactions and 15,000 New Israeli Shekels (NIS) for personal transactions will be the [new limit for cash payments](https://cointelegraph.com/news/israel-puts-the-brakes-on-cash-to-spur-digital-payments) effective August 1, 2022. Additional restrictions, such as a ban on storing more than NIS 200,000 shekels ($58,660) in cash in private residences, are expected shortly.

According to Tamar Bracha, the Israel Tax Authority's (ITA's) head of law enforcement, limiting the availability of cash will make criminal activity more difficult. As a result, "the goal is to reduce market cash fluidity, particularly because criminal organizations tend to rely on cash."

Some have interpreted it as a positive sign of the country's new limits on hard-cash transactions. According to Lark Davis, a crypto influencer with over a million followers on Twitter, Israel is neither the first nor the last country to impose such restrictions. According to the founder of Lyn Alden Investment Strategy, the trend "will probably continue to other countries in the future."

## Cryptocurrency regulation and CBDCs

Central bank digital currencies (CDBCs) are also being explored in the region, with the country first considering a CBDC at the end of 2017. After conducting a public consultation in May, the Bank of Israel released the results of the responses, which indicated strong support for further research into CBDCs and how they would affect the payments market, financial and monetary stability, and legal and technological issues.

In June, the Bank of Israel revealed that it had conducted its first technological experiment with a CBDC, examining user privacy and the use of smart contracts in payments. In addition, a framework for regulating digital assets is being developed in the country.

According to Oz Finance's Jonathan Shek at this year's Israel Crypto Conference in May, Israel's financial regulators have prepared a comprehensive and holistic regulatory framework for digital assets.

Shek hinted that it would happen soon, but he didn't give a specific date, saying that the Israeli government wanted to encourage the development of the crypto industry in their country if it was done responsibly.


Israel halts cash to encourage digital payments

When you first start investing in crypto, where do you even begin? Crypto cards are the answer to this question. These cards offer a convenient way to invest in top cryptos and get into the space at a low cost.

There are many crypto card services available in the market today, but not all of them are worth your time and money. Before you dive in and purchase any card, make sure that it meets certain criteria that make it stand out from the rest. In this article, we will explore some of the best places to buy cryptocurrency prepaid debit cards in the UK.

### 1. What are crypto cards and how do they work?

Crypto cards are a way to invest in top crypto currencies without spending much money. You can load the card with any amount of cryptocurrency and use it at digital stores around the world. These cards also offer tax-free investment opportunities as well.

This allows you to make purchases with your crypto that have tax-free benefits when you use them on your card. No matter where you go, you can use your crypto for a variety of purposes, from buying goods and services to paying for flights and hotels in other countries.

### 2. The top three crypto cards in the UK

#### 2.1 Crypto IRA

This is a great option for those looking to invest in crypto without having to worry about the volatility of the market. With a Crypto IRA, you can get all of the benefits of investing in cryptos without having to pay any taxes on your profits.
The best part is that you can use your card at any ATM or digital store that accepts Visa. You can also use it to make purchases online and in-app.
This is one of the best ways to get started with cryptos without having to put any money down. All you need is a valid ID and you can start using your card right away.

#### 2.2 Bittylicious

This is another great option for those looking to invest in crypto without having to put any money down. Bittylicious allows you to buy Bitcoin and Ethereum with a credit or debit card. You can also use it to make purchases online and in-app.
The best part about Bittylicious is that there are no fees for buying or selling cryptos. You can also get started with as little as £20.

This is a great option for those who want to get started with cryptos without having to put any money down. All you need is a valid ID and you can start using your card right away.

Bittylicious also has a great referral program where you can earn £20 for every friend that you refer.
If you’re looking to get started with cryptos without having to put any money down, then Bittylicious is the way to go.

#### 2.3 [Cryptopay](https://cryptopay.me/)

This is a great option for those looking to use their crypto for everyday purchases. Cryptopay allows you to use your Bitcoin, Ethereum, Litecoin, and XRP to make purchases at over 33 million merchants worldwide.
You can also use your card to withdraw cash at ATMs or send money to friends and family. The best part is that there are no fees for using your card.

If you’re looking for a great way to use your crypto for everyday purchases, then Cryptopay is the way to go.

### 3. How to choose the right crypto card for you

Not all crypto cards are created equal. If you don't know what you're looking for, it can be difficult to find an option that fits your needs. Before you buy, make sure that the card offers services with which you are comfortable.

For example, some cards offer a completely anonymous experience. Others don’t offer any fee discounts or protections but do provide a customer service line or the customer support team who can help if needed.

If you’re not convinced by this point about where to buy your card and want more information on how each card works and the fees that come with it, then we recommend checking out our comparison of the best crypto cards in the UK.

### 4. The benefits of using a crypto card

The biggest benefit of using a crypto card is that it provides you with an easy and secure way to invest in cryptos. Some cards also offer the option of investing in traditional fiat currencies like Pound Sterling or US Dollars and converting to cryptocurrency at the time of sale.

This means that you can invest in cryptos even if your bank doesn’t support them. This flexibility is one of the main reasons why people choose to use a crypto card to be their primary method of investing in crypto. What other investment strategy lets you buy stocks, bonds, futures, and cryptocurrencies all from one place?

### 5. Things to consider before choosing a crypto card

The most important things to consider before you make a decision about any crypto card is the initial purchase amount, signing up for recurring payments, crypto card conversion rates, and fees, transferring funds to a bank account and the delivery guarantees information that can be found on the official website of each crypto card, so it is important to do your due diligence and make sure that the crypto card you choose meets your requirements.

### 6. How to use your crypto card

First, you’ll need to open an account with the company that issued your card. Then, you’ll need to go through a verification process to ensure identity and safety. Once this is done, it will be easy to start buying crypto with your card.

Cryptocurrency cards are easy to use and can be managed on their website. Once you have purchased your card, you will be able to deposit funds into it using a wire transfer or debit card. You will then be able to buy any type of cryptocurrency available and trade it in for whatever fiat or crypto currency you desire.

Crypto cards are like cryptocurrency ATMs where they are attached directly to the blockchain so that you never have to worry about losing your money or having anything stolen from your wallet.

For more crypto guides go to [Latest Moni](/news).


The Best Crypto Cards in the UK

COTI crypto is the first enterprise-grade fintech platform that enables companies to develop their own payment solution with digitized currencies.

[COTI](/news/article/coti-crypto) (currency of the Internet) is a Layer-1 platform based on the so-called Proof-of-Trust (PoT), the consensus that integrates a directed acyclic graph (DAG) data structure with the demands linked with traditional finance (TradFi). A DAG is a data structure that enables more efficient and scalable transactions.

## What is Coti Crypto?

Basically, COTI crypto is the native token of the COTI ecosystem, with a total supply of two billion. It doesn't require PoW mining to secure the network and operates on three different mainnets: Trustchain, Ethereum, and BNB Chain.

The platform said it is focused on building "the next generation"  of digital and financial products encompassing aspects of the new digital economy.

To tackle scalability issues that most blockchains have, COTI incorporates Trustchain, a DAG-based data structure, and Proof of Work (PoW) to develop the Proof of Trust consensus mechanism.

The name of COTI DAG is "the Cluster," a distributed ledger that records transactions on the network.

But COTI DAG doesn't aggregate all transactions into blocks. Instead, transactions are lined one after the other. For a new transaction to be confirmed, the validating nodes must link it to two prior transactions.
The decision on the type of transactions that should be linked depends on their Trust Score.

According to the official explanation, “in the PoT system, validators are selected based on their trustworthiness".

That means each user and node in the Cluster is rated on their Trust Score. This is calculated based on historical behaviour, including payment statistics. The higher the Trust Score, the quicker their transactions can be processed and the lower the fees".
 
After the user transacts on COTI, the Source Selection Algorithm non-selectively designates two validating nodes with similar Trust Scores. Because of that, transactions from trusted users are usually confirmed much faster. Scalability is ensured because transactions with different Trust Scores are parallelly processed and are, therefore, more secure.

However, one must understand that when talking about the Proof of Work, in COTI, it isn’t implemented in the way we’re used to. It doesn’t depend on mining to earn trust. PoW here exists only to protect COTI from spamming attempts and encourage network users.

Finishing PoW tasks enables validators to connect the transactions to the Cluster, but it doesn't promise that this will actually happen. It depends on their Trust Scores. These are also used for setting the PoW levels that can impact transaction fee levels. With no mining required, COTI can operate with very low transaction fees.

## COTI Crypto MultiDAG layer

One can compare the COTI MultiDAG ecosystem to that of Ethereum. Few independent DAGs exist on the network, all with individual goals. They each preserve completely customized tokens and apps, but run simultaneously on the same infrastructure to increase efficiency.

The COTI MultiDAG 2.0 will allow companies, entrepreneurs, and developers to issue tokens with Trustchain-like performance, such as scalability, high throughput, low cost, etc.

Users can also construct their own stablecoins supported by cryptocurrencies, fiat money, or even exist as non-collateralized stablecoins with the MultiDAG.

One of the examples is Cardano's stablecoin Djed, of which COTI is an official issuer.

Recently, the [CEO of COTI](https://www.coti.io/team) crypto, Shahaf Bar-Geffen gave a fantastic insight into what COTI crypto represents and explained how he sees things surrounding blockchain technology in particular.

Bar-Geffen said he knows blockchain technology has expanded from a "niche and highly specialized subset of information technology" to become one of the modern era's most popular and in-demand solutions."

And COTI represents exactly that - driven partially by Web3-empowered assets such as cryptos and NFTs, COTI became a worthy actor within numerous sectors, like supply chain management. This has been a true sign of its positive utility.

Bar-Geffen said that blockchain has proven to be a secure, transparent, scalable, and trustworthy form of storing and transmitting data among a limited or unlimited number of users. They added that it is unsurprising that blockchain infrastructure spending will increase to about $20 billion by 2024.


What is Coti Crypto?

If you have Googled 'crypto friendly banks UK', you'll know that they are few and far between.

The majority of UK banks have so far not responded to customer demands to be able to pay for cryptocurrencies from their accounts or receive funds from crypto exchanges into their accounts.

If you've tried to get a crypto-related payment reported in your account, you'll understand why you need a crypto-friendly bank.

That need has prompted a surge in largely fruitless searches for 'crypto friendly banks UK'.

Here, we'll try to help answer that query.

## Crypto Friendly Banks UK

Financial institutions that accept cryptocurrencies as payment are known as crypto-friendly banks. In other words, these institutions allow cryptocurrency trading and support digital currencies for fiat currency transactions.

In the United Kingdom, it is legal to own and trade cryptocurrencies. Even though there is no tangible asset to hold, they are now classified as property assets rather than currency.

Any crypto exchanges in the UK must register with the Financial Conduct Authority, which regulates the industry to prevent money laundering. According to the FCA, any trading platform must demonstrate its compliance with anti-money laundering rules.

Binance, a cryptocurrency trading platform, was barred from participating in any regulated trading in the UK in 2021 for failing to demonstrate that it respected those standards. This demonstrated that the FCA isn't hesitant to take action against cryptocurrency trading platforms.

## 5 Crypto Friendly Banks UK

Here are five banks operating in the UK which are considered crypto-friendly:

•	[Revolut](https://www.revolut.com/): Revolut is an app-based challenger bank that is crypto-friendly in the United Kingdom. Customers can not only trade stocks and shares through their accounts, but Revolut is also a firm believer in cryptocurrency. In the past, crypto exchanges (like Binance) have temporarily blocked GBP deposits and withdrawals. Alternative fiat currencies, such as US Dollars or Euros, can be used with Revolut.
•	[RalisBank](https://www.railsr.com/?lang=de): Railsbank was founded in 2016 by fintech veterans Nigel Verdon and Clive Mitchell. It has offered digital banking services since its inception, breaking new ground and pushing the envelope. RalisBank is setting the standard for making financial products and services digital and embeddable, allowing customers to have deeper and richer interactions with the brands they love.
•	TSB: TSB is known to accept credit and debit card purchases of cryptocurrency. Withdrawing or depositing to bitcoin exchanges has never been a problem. However, banks often flag large transfers, and you may need to split transfer amounts or contact TSB in such circumstances.
•	Royal Bank of Scotland (RBS): The UK Government-owned RBS has taken a favorable stance on Bitcoin transactions in recent years. In addition, the bank allows you to buy and trade cryptocurrencies. RBS will limit payments to Bitcoin exchanges that pose the most significant risk of financial loss.
•	Solaris Bank: Solaris is a well-organised bank that provides cryptocurrency transactions and custody of cryptocurrency. It established a regulated cryptocurrency custody service in early 2021, based on a brokerage and trading application programming interface.

## Which Banks Aren't Crypto-Friendly?

Lloyds: Since 2018, the Banking Group (which includes Lloyds Bank, Halifax, Bank of Scotland, and MBNA) has prohibited any credit card payments to cryptocurrency exchanges. Regarding debit card payments, it's more hit-or-miss. Sometimes the transaction goes through smoothly, and other times it's reported as fraud. If you plan to trade regularly, you should probably avoid it.

Starling: Although its international currency provider does not support cryptocurrency exchange payments, and there may be other reasons why payments are denied, there is no formal policy prohibiting them. Customers have already reported frozen accounts, so this is another one to avoid.

HSBC: It previously claimed to be crypto-friendly, but does not allow deposits, and payments made using debit and credit cards are sometimes denied. It's not completely unfriendly, but there's a higher risk of your payments failing or being identified as fraudulent, so another bank might be a better option.

## Conclusion

The number of people holding cryptocurrency constantly expands worldwide, including in the United Kingdom. The number of businesses accepting Bitcoin as payment is also increasing. Despite the severe dangers and restrictions associated with cryptocurrency transactions, several banks in the United Kingdom allow users to do so simply.

Hopefully, this article means you won't have to search Google for 'crypto friendly banks UK' this year!


Latest Moni

Crypto Payments News

Read the latest crypto payments news

Crypto Payments to "Make Sense" with Layer 2 Growth

Gucci now accepts ApeCoin as payment

Israel halts cash to encourage digital payments

The Best Crypto Cards in the UK

What is Coti Crypto?

Crypto-Friendly Banks UK 2022

SEC vs Ripple case influence on XRP price in UK

The Solana blockchain & current price in GBP

Blackrock investing strengthens crypto’s position