Mastercard and Binance Team Up to Launch Second Prepaid Crypto Card in Brazil
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Popular online payment solution MasterCard has recently joined forces with Binance to launch a new crypto debit card in the Latin American region. According to the world’s largest crypto exchange, the crypto debit card will allow Brazilian crypto users to pay for goods and services with 14 assets using their crypto-enabled cards.
Binance Card Set for Full Launch Soon
Binance, the world’s largest crypto trading hub, announced the launch of the Binance Card in Brazil on January 30. This new card is set to be issued by Dock, a payment organization governed by the Brazil Central Bank, Banco Central do Brasil. The initiative is done in partnership with card payment giant Mastercard.
Olá, Brasil! 🇧🇷#Binance Card has just launched in Brazil – another step towards crypto adoption 🤝 pic.twitter.com/UJRmpMhpbQ
— Binance (@binance) January 30, 2023
With the new card, new and existing Binance users in the country with recognized national IDs will be able to make cryptocurrency purchases and pay bills. According to Binance, the card is currently in the beta testing stage and is expected to make its full launch in the coming weeks.
After launching the product in Argentina in August 2022, Binance has now made it available in Brazil. The report claims that Brazil is one of Binance’s top 10 international markets.
Guilherme Nazar, the general manager of Binance Brazil, said that the card is a “significant step in encouraging wider crypto use and global adoption.” Nazar also mentioned that cryptocurrencies primarily facilitate payments across borders, although adoption is still on a slow trajectory.
At the point of sale, the card will enable users to convert from 14 crypto assets to the Brazilian Real in real time. Binance card users will enjoy zero fees for a limited number of ATM withdrawals and earn up to 8% in crypto cashback on specific transactions.
Brazil’s recent push for more inclusive financial services is not its first interaction with digital currencies.
The recent Mastercard 2022 New Payments Index report shows that Brazil leads the global average in crypto adoption and usage. A global poll of more than 35,000 people was conducted, and results showed that 49% of Brazilians made at least one crypto-related transaction, contrary to the average global number of 41%.
Brazil’s growing crypto appetite has been fueled by outgoing President Jair Bolsonaro, who signed a bill allowing cryptocurrencies to be used as a form of payment within the country. While many digital assets are now included in the definition of authorized payment methods, the new legislation does not make Bitcoin legal tender like it is in the sister country El Salvador. Instead, it offers a licensing system for companies that offer virtual asset services.
Brazil Joins Argentina in Crypto Card Adoption
The prepaid card initiative for Latin America has been ongoing for a while, with Argentina becoming the first country in the region to accept the payment method.
According to Binance, the card will let its customers in Argentina use Bitcoin and other cryptocurrencies to make purchases and ATM withdrawals in local currency everywhere Mastercard is accepted, which includes almost 90 million physical and online retailers worldwide. Additionally, some purchases might reward Argentine cardholders up to 8% back in cryptocurrency.
The card introduction is part of Binance’s effort to boost cryptocurrency adoption worldwide. In April, the crypto exchange announced similar initiatives for Binance users in Ukraine and the European Economic Area in 2022.
Cryptocurrencies are seeing increased mainstream acceptance in developing economies due to the challenges of accessing proper financial utilities. Blockchain assets are seen as a stop-gap solution to decrease the chasm between the banked and the underbanked and promote financial inclusivity.