LONDON: Cryptocurrency lender Nexo has said it has teamed up with global payment company Mastercard to unveil on Wednesday (April 13th) what the world calls the world’s first “crypto-supported” payment card.
It indicates the latest move by crypto and existing financial networks to join forces as digital assets become increasingly popular.
Nexo says the card, initially available in select European countries, allows users to spend without having to sell their digital assets, such as bitcoin, which is used as collateral to secure approved credit.
Most traditional credit cards are unsecured and have a credit limit set.
The card is linked to a credit line provided by Nexo, a crypto-supported credit line and can be used by 92 million merchants worldwide where they accept Mastercard, allowing investors to spend up to 90 percent of the fiat value of their crypto assets. said Nexo.
“The card does not require minimum repayments, monthly fees or inactivity fees. There are no currency fees of up to € 20,000 per month,” Nexo said.
There are no limits on how much a customer can spend or withdraw from an open credit line, and interest is paid only on the amount of credit actually spent. Interest remains 0 percent for customers who maintain a loan-to-value ratio of 20 percent or less.
“Mastercard is aware that digital assets are revolutionizing the financial landscape,” said Raj Dhamodharan, Head of Crypto and Blockchain Product and Partnerships at Mastercard.
Electronic money company DiPocket is Nex’s card issuer.
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