In the wake of increasing crypto interest, another credit card is ready to hit the market.
Crypto lender Nexo has partnered with Mastercard and DiPocket to launch the first crypto-backed payment card, the company confirmed in a statement.
The card will reportedly work as a credit line that will not require the users to sell their digital assets. Instead, the holdings will be used as collateral to provide liquidity to the card. Investors will be allowed to spend up to 90% of the fiat value of their crypto assets, according to the release.
The crypto Mastercard will initially be made available in select European markets. For which, DiPocket is Nexo’s card issuer.
Advancing fintech
Fedele Di Maggio, Co-founder and CEO at DiPocket, said, “Our partnership in this project with Nexo and Mastercard is a distinctive example of how DiPocket’s embedded finance technology enables visionary companies to deliver value and convenience to their customers.”
The card can be used at about 92 million merchants worldwide where Mastercard is serviceable. Moreover, “The card requires no minimum repayments, monthly, or inactivity fees. There are no FX fees for up to 20,000 euros per month,”
Crypto credit cards, in contrast to traditional credit cards, also offer crypto rewards. Nexo also announced that it will offer the opportunity to earn 2% Crypto Rewards on every Nexo Card transaction.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Mastercard’s head of crypto and blockchain products and partnerships.
Peaking interest
The card launch also comes at a time when crypto users have reportedly increased by more than a third when compared to the previous year. Meanwhile, keeping the skyrocketing interest in mind, Crypto.com, Robinhood, Binance, etc. already offer crypto debit card facilities in the sector. Recently, Coinbase also announced that it is removing transactions fees for its crypto debit card to make it an even more appealing option.
Some of the other credit card options in this category include BlockFi Rewards Visa Signature Card, Venmo Credit Card, and Gemini Credit Card among other names.
However, Christine Lagarde, president of the European Central Bank (ECB) had raised concerns around the sector in the past due to a lack of regulations. Meanwhile, in the wake of increasing global sanctions, the European Parliament and member states are reportedly looking to fasten the implementation of EU proposals under the markets in crypto assets (MiCA) rule book.
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Source: https://beincrypto.com/first-crypto-backed-payment-card-to-make-a-debut-nexo-mastercard/