Crypto platform Nexo has partnered with global payments company Mastercard. Both the platforms have jointly launched the crypto card. It is being said to be the world’s first crypto payment card. This move of the company indicates that digital assets are now gradually consolidating their hold in the mainstream. That’s why crypto financial networks have now come into action mode.
Nexo said that the card will be made available in some countries in Europe at an early stage. Through the card, users will be able to use their digital assets such as bitcoins for purchases without having to sell them, as it will use that asset as an asset to be held for repaying loans. This crypto card will hold as a guarantee the digital asset that you have deposited in the card. On the card, the user can make purchases of digital assets without spending and without paying any charges on the card.
The card will be linked to Nexo’s crypto backed credit line. It can be used with 92 merchants worldwide where MasterCard is valid. It will cost 90 percent of the fiat value of the investor’s crypto assets.
Nexo told Reuters that the card holder does not have to pay any monthly payment for the card. For this, no monthly payment will have to be made and no payment will have to be made in case of non-use of the card.
There will be no limit on how much a customer can spend or withdraw from the open credit line and interest will be paid only on the amount of credit actually used. For customers who maintain a loan-to-value ratio of 20% or less, the interest will remain at 0%. Commenting on the move, Raj Dhamodharan, Mastercard’s Head of Crypto and Blockchain Products and Partnerships, said, “Mastercard recognizes that crypto is about to revolutionize the financial world.
The cryptocurrency market, which has been hit by a recession for some time, is now seeing a boom again. With news of crypto adoption pouring in from all over the world, Nexo’s move should not come as a surprise.