The cryptocurrency exchange will allow users to manage their cards directly through the Binance app and website. Thus, users will have easy access to their transaction history and funds through their bank card. In the coming months, the exchange will work on adding support for other cryptocurrencies and entering new markets. At the moment, all these agreements are in force in Argentina, and then throughout Latin America. Here are the details of this really interesting case.
History of cooperation
Binance and Mastercard have successfully launched a prepaid reward card in Argentina to help people spend crypto on commodities in a region where the local currency is suffering from one of the highest inflation rates in the world. The card will allow users to buy things and pay bills with bitcoin among other cryptocurrencies at more than 90 million merchants, according to the exchange’s announcement Thursday. The announcement goes on to say that the card will convert the cryptocurrency users hold in their app into fiat currency in real time at the point of sale. Users will also be rewarded with up to 8% cashback.
This collaboration was considered an important step to encourage greater use of cryptocurrencies and global adoption, and is now available to users in Argentina. In addition, the card does not charge fees for ATM withdrawals and users can withdraw up to 45,000 pesos, 339 USD at the current exchange rate, per day, or a maximum of 180,000 pesos, equivalent to 1,357 USD per month. The Binance Card cashback makes it a strong competitor to traditional banks that either offer very low cashback percentages or charge high fees for ATM withdrawals.
It all starts in Argentina
Mastercard is betting on cryptocurrencies in Latin America as its research has shown that more than half of the region’s population is familiar with digital assets. The card is designed to increase the use of cryptocurrencies in the country and will allow merchants to receive fiat while allowing users to pay with different cryptocurrencies, Hinz said.
Payments are one of the earliest and most obvious use cases for cryptocurrencies, but implementation is still a long way off. When using a Binance card, merchants continue to receive fiat currency while users pay with the cryptocurrency of their choice. We believe the Binance Card is an important step in encouraging wider use and adoption of cryptocurrencies around the world, and is now available to users in Argentina who also use Binance.
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