Credit cards and cryptocurrency are becoming one, and several exchanges and blockchain-based companies have sought to release their own crypto-backed credit and debit cards. The latest company to announce such a project is Block Fi, which says it will launch a new bitcoin rewards credit card later this year.
Block Fi to Issue BTC Rewards Card
2020 is proving to be something of a mixed period for bitcoin. While the currency started out the year at well over $7,000, it quickly dropped during yesterday’s morning hours to roughly $6,900. From there, a surprise drone attack on Iran that wound up killing one of the nation’s leading generals stirred bitcoin further, hiking it into the $7,000 range once again. Overall, the currency jumped by more than $400 in mere minutes.
One thing that’s interesting about the coin is its constant desire to replace any traditional or standard financial tools out there, one being credit cards. Credit and debit cards are issued by centralized financial companies or banks, meaning that you must go through certain steps and earn approval before you can get one.
If you have a solid credit history, you’re likely to get your hands on a new card without issue. You’ll answer a short questionnaire and the card will be mailed to you in a few business days.
However, for other people, getting their fingers on a credit card isn’t so easy. If they’ve been struck with financial disaster in the past and have either missed or been late on payments before, the bank issuing the card isn’t likely to take too kindly to this information and dismiss the recipient.
Crypto, however, doesn’t require any such checks, and can be utilized by anyone – whether they have a solid financial history or not – to pay for good and services. With crypto-based credit cards, one typically uses a card that’s tied to their crypto wallet. If they have $20,000 in BTC in their account for example, they’ll have $20,000 to spend through the card.
While Block Fi’s card won’t work exactly in this way and will take on a more traditional structure, individuals who utilize the card to purchase goods and services will earn bitcoin rewards on everything they buy. The idea is to raise crypto awareness and bring people closer to the industry.
Getting Bigger and Better
In a statement, the company explains:
You’ll be able to spend money on your BTC rewards credit card like you normally do, except instead of earning airline miles or cashback, you’ll be able to earn an industry-leading, BTC cashback rate on every transaction that you make with the card.
Block Fi came about roughly two years ago and seeks to improve mainstream crypto adoption. Last August, it held a funding round that saw the likes of Winklevoss Capital, Galaxy Digital and ConsenSys Ventures serving as investors.