Now Crypto-backed Credit Cards are a Reality — Thanks to Nexo and Mastercard’s Collaboration
Leading crypto assets regulation firm, Nexo, has announced that it will be launching the world’s first crypto-backed credit cards in partnership with Mastercard and DiPocket. This move would give Nexo’s users access to more than 92 million outlets worldwide that accept Mastercard without having to sell their cryptocurrency holdings.
The card from Nexo would initially be rolled out in a few European countries, and it allows the users to spend money without having to sell their digital assets. Instead, it directly takes the amount from the crypto holdings and allows 90% of the fiat value of a user’s crypto holdings to be spent. Mastercard, in this collaboration, serves as the payment and tech firm in such crypto-backed credit card transactions.
This partnership shows signs of the co-existence of future and conventional finance machines since digital currencies are slowly occupying mainstream finances.
The Nexo credit card has no minimum repayments, monthly, or inactivity fees. Also, there are no FX (foreign transaction) fees for up to €20,000. Also, the card comes with 0% APR (Annual percentage rate) (available to users who have a loan-to-value ratio of 20% or below), and your crypto holdings will stay as collateral. The card also offers assured crypto rewards of up to 2% in cashback. Another important aspect here is that the Nexo credit card can be synced seamlessly with existing mobile payment systems such as Apple Pay and Google Pay, allowing seamless transactions from anywhere.
Raj Dhamodharan, Head of Crypto and Blockchain Partnerships at Mastercard, said, “Mastercard believes that digital assets are revolutionizing the financial landscape and we are leading in innovation with programs like our partnership with Nexo to deliver people new and one-of-a-kind choices in how they pay and activate their crypto holdings. We’re excited to continue to innovate in payments by making digital assets more accessible across the ecosystem.”
Crypto-backed credit cards are no more the future, as you can see by this formidable partnership between three of the leading financial firms. Even you can continue with this revolution if you have an efficient working solution.
