To put it simply, the so-called U card and "currency exchange" are completely different concepts, covering entirely different scenarios. The actual operation of the U card involves transferring U to an intermediary, who then exchanges it for USD (or other fiat currencies) and deposits it into a bank account. Although it can indeed be withdrawn and spent, it is limited to small amounts; the larger the amount, the higher the slippage. It is suitable to use U as a means of consumption.

On the other hand, the essence of currency exchange is the transfer between "fiat currencies." For example, USDC is considered USD in most states in the United States, so it can be directly exchanged for USD on Coinbase (the issuing partner of USDC). Whether through Wise or ZA, what is actually accepted is USD and other fiat currencies, and the final amount entering the bank is the local currency that can be used for transfers, withdrawals, and spending.

In layman's terms, the former is suitable for small amounts, while the latter is applicable for amounts ranging from small to large, and even huge amounts. However, as the amount of funds increases, the required KYC and AML become stricter, whereas the U card does not have this burden.

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