Bulgarian decentralized lending platform Nexo has unveiled a crypto-powered debit and credit Mastercard for citizens of the European Economic Area (EEA).
According to the Aug. 31 announcement, the Nexo Card will allow users to spend their euro, U.S. dollar, and British pound stablecoins via debit transactions at over 100 million merchant terminals worldwide. Up to 9% in annual interest will reportedly be paid to stored balances.
Meanwhile, the Nexo Card’s credit transactions use major cryptocurrencies, such as Bitcoin (BTC), as collateral, offering up to 2% cash back and interest rates of 16% per annum on used credit lines. Both debit and credit transactions directly convert users’ crypto to fiat money when used at terminals. Nexo claims that custodied assets are insured by Ledger and Bakkt.
The firm also says that the new Nexo Card has no monthly or inactivity fees, no foreign exchange fees for up to 20,000 euros ($21,700) per month, and a limit of 10,000 euros ($10,800) in monthly ATM withdrawals. Upon passing Know Your Customer verification checks, a virtual card and a physical card will be issued; both can connect to Apple Pay and Google Pay. The card is only available to citizens of the 30-country EEA.
Earlier this year, Nexo’s corporate offices in Sofia were raided by Bulgarian police over allegations of violating sanctions and Anti-Money Laundering laws against Russia. The firm said it plans to sue the Bulgarian government for damages relating to the incident. Due to issues with the local government, Nexo does not provide services to residents in Bulgaria.
The future of #crypto payments is here.
Introducing the world-first Dual Mode of our pioneering Nexo @Mastercard, featuring both credit and debit capabilities.
Experience the ease of debit coupled with the power of credit, earn rewards, and spend your way. pic.twitter.com/FuHNUrSRNO
— Nexo (@Nexo) August 31, 2023
Magazine: Should we ban ransomware payments? It’s an attractive but dangerous idea