Binance, a prominent global cryptocurrency exchange, announced the introduction of a crypto prepaid card in Argentina on Thursday as part of a cooperation with Mastercard to bridge the gap between cryptocurrencies and everyday expenditures.
Argentina is the first Latin American nation to make use of this commodity. The Binance Card is part of the exchange’s ongoing attempts to increase worldwide cryptocurrency acceptance in a practical way. The product is now in beta testing and will be publicly accessible in the next weeks.
According to the release, any consumers in Argentina who have a valid ID will be able to use the Binance Card to make purchases and pay bills in cryptocurrencies such as Bitcoin and BNB at over 90 million Mastercard merchants worldwide, both physical and online. Customers will earn up to 8% in crypto cashback when their cryptocurrency is converted to fiat money in real time at the moment of purchase.
Binance’s General Director for Latin America, Maximiliano Hinz, commented on the development: “Payments were one of the earliest and most apparent use cases for cryptocurrency, but adoption still has a long way to go. Merchants continue to get money while using the Binance Card, while customers pay in the cryptocurrency of their choice. We feel the Binance Card is a huge step toward enabling greater crypto usage and worldwide acceptance, and it is now accessible to Argentina consumers.”
Binance intends to grow into new markets and support more cryptocurrencies.
Inflation is fueling the growth of cryptocurrency credit cards.
The timing of Binance’s debut of such crypto prepaid cards in Argentina, which is becoming a competitive area for the crypto-card industry, is critical.
People in Argentina desire bitcoin access because they refuse to utilise undervalued or unstable conventional currencies. Currently, the government depends on crypto credit cards to mitigate the effects of growing inflation on its economy.
Lemon Cash, an Argentine fintech, was the first to issue new crypto credit cards to enable bitcoin payments in November of last year. Lemon worked with Visa to expedite the distribution of its Bitcoin card incentives in Argentina, after the Latin American country’s annual inflation rate increased by more than 50%.
Lemon has offered to roll out over 3 million crypto credit cards by the end of the year to assist Argentina decrease its increasing inflation rate. Since Argentina’s inflation rate looks to be worsening, other corporations have stepped in to assist the South American country.
Other cryptocurrency exchange providers, such as Ripio and Universal Exchange, have lately begun to provide crypto credit cards to assist Argentina in implementing a service similar to Lemon. These companies’ efforts seem to be attracting more customers to invest in Argentina’s blockchain business.