Cryptocurrency bank Nexo announced a partnership with Mastercard to launch on Wednesday (13) what it calls the world’s first crypto-backed payment card.
Nexo said the card, initially available in select European countries, allows users to make purchases without having to sell their digital assets, such as bitcoin, which are used as collateral to back up the credit granted.
The card is linked to a digital asset line of credit provided by Nexo and can be used at 92 million stores worldwide where the Mastercard brand is accepted, allowing users to use up to 90% of the value of Mastercard’s digital assets. their wallets, he told Nexo.
“The card does not require minimum payments, monthly fees or charges for inactivity. There are no exchange fees for up to 20,000 euros (R$ 100,000) per month,” Nexo said.
There are no restrictions on how much a customer can spend or withdraw from the open credit line and interest is paid only on the amount of credit actually used. Interest remains at 0% for customers who maintain a loan-to-value ratio of 20% or less.
“Mastercard recognizes that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Head of Cryptocurrency and Blockchain Products and Partnerships at Mastercard.
The electronic money company DiPocket is the card issuer of Nexo.
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