I'm wondering if there are debit cards tied to commodities?

For example is there a debit card where I can deposit in Gold, Silver, or cash that is immediately converted to the asset and then use the debit card at a store and at the point of sale the commodity is sold by the issuer to cash to settle the transaction?

If these don't exist I'm wondering why?

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    If these exist, I want to see what their ATMs look like. – DJClayworth Jul 14 '13 at 3:25
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    Gold and silver are sold in round quantities. You cannot charge $2.99 for a Grande Latte and expect your commodity broker to sell $2.99 worth of gold to pay BarStucks. – Dilip Sarwate Jul 14 '13 at 4:05
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    @DJClayworth: they look like this. – Steve Melnikoff Jul 15 '13 at 13:35

No, debit cards are generally tied to bank accounts which would hold some form of cash though this may be in various denominations such as US Dollar, Yen, Canadian Dollar, Euro, etc.

Something to consider in what you are proposing is to handle a few main points. Does the bank convert the asset to cash? Does the payment processor convert this? Does something else handle this transaction? Secondly, does one get to choose a currency as in parts of Canada, one could use US dollars or Canadian dollars for payment. Does the hard asset auto convert to local dollars or is there something else to wire in here?

Lastly, consider how you are assuming there would exist a 24/7 conversion that would be interesting to see how that is handled. Is the price of the metal at 2 pm the same at 4 pm? How about 2:30pm? There is something to be said for when are the rates being updated and pushed out properly to the millions of debit machines out in the US and Canada, this is if I just stick to North America where I'm more familiar with banks.

If you could get past the technical headaches, have governments pass the legislation to approve these kinds of transactions and get banks on board with this arrangement, then perhaps this could exist but I see a lot of road blocks in the way.

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