The new credit card will offer rewards at Bitcoin instead of air miles or cash.
Visa and BlockFi have teamed up to launch a new credit card that rewards users with Bitcoin (BTC), setting the stage for wider adoption of digital currency.
BlockFi, a New York-based startup that specializes in cryptomoney-backed loans and savings accounts, announced the partnership on Tuesday. As Bloomberg reported, the new credit card will reward purchases with Bitcoin instead of air miles or other rebate rewards. Cardholders will be eligible to receive 1.5% of their BTC purchases.
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The card, which has an annual fee of USD 200, will be issued by Evolve Bank & Trust.
Although the credit card will be available to the general public in early 2021, BlockFi account holders will be able to register in advance.
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BlockFi is „excited to add credit cards to our product suite and expand Bitcoin’s accessibility to a wider set of consumers,“ said Zac Prince, founder and CEO of the startup.
The BlockFi partnership is part of Visa’s Fintech Fast Track program, which „aims to accelerate the integration process“ with the credit card network. Terry Angelos, senior vice president and global head of financial technology at Visa, said the goal of the fast-track program is to help innovative companies „scale efficiently.
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This is not Visa’s first foray into the world of crypto-currency. Earlier this year, the credit card company partnered with the digital startup, Fold, to offer a debit card that earns rewards in cryptomonies.
More generally, Visa has outlined a positive vision for the adoption of digital currency, reversing an earlier, more hostile attitude. As reported by Cointelegraph, Visa’s evolving stance on cryptomoney is to ensure that it maintains its lead in the payments market. Currently, there are more than 25 cryptomoney wallets connected to Visa systems.
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The credit card company is also helping to shape regulations for digital assets around the world, including its work with the World Economic Forum to develop recommendations on the use of digital central bank currencies.
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