World’s First “Crypto-Backed” Payment Card:
Crypto lender Nexo has collaborated with Mastercard to launch the world’s first “crypto-backed” payment card.
- This launch has signaled the move by financial and crypto networks to collaborate as digital assets are becoming more mainstream.
- Initially, the card will be available in selected European countries.
- It will allow users to spend without selling their digital assets like bitcoin, as the digital assets are used as collateral to back the granted credit.
- The crypto-backed credit card can be used at 92 million merchants across the world wherever Mastercard is accepted.
- Through this card the investors will be able to spend up to 90 percent of the fiat value of the crypto assets that they own.
- The card requires no monthly, minimum repayments, or inactivity fees. Also, this card has no FX fees for up to 20,000 euros per month.
- Also, the card has no restrictions on the spending limit of a customer and they can also withdraw from the open credit line.
- The interest on this card is only paid on the amount of credit that has been used by the customer.
- The customers who will be maintaining a loan-to-value ratio of 20 percent or less will be charged 0 percent interest.
- DiPocket an electronic money firm is the card issuer of the Nexo credit card.