Visa and BlockFi set to introduce bitcoin rewards credit card as adoption booms. Visa and BlockFi join forces to introduce a new credit card that rewards Bitcoin (BTC) users, setting the stage for the broader mainstream acceptance of digital currency.
New York-based startup specialising in crypto-backed loans and savings accounts, BlockFi revealed its collaboration on Tuesday. As reported by Bloomberg, the new credit card rewards purchases with Bitcoin instead of airline miles or other cash back rewards. Cardholders would be entitled to earn 1.5% of their purchases back to BTC.
The card, carrying a $200 annual fee, will be issued by Evolve Bank & Trust. The credit card will be made available to the general public in early 2021. However, BlockFi account holders will be able to register beforehand.
Zac Prince, founder and CEO of BlockFi is “excited to add credit cards to our suite of products and expand Bitcoin’s accessibility to a broader set of consumers”
The BlockFi collaboration is part of Visa’s Fintech Fast Track Program, which “aims to speed up the process of integrating” with the credit card network. Terry Angelos, senior vice president and global head of fintech at Visa, said the goal of the fast track program is to help innovative companies “scale with efficiency.”
This isn’t Visa’s first entrance into cryptocurrency. Earlier this year, the credit card company partnered with digital startup Fold to offer a debit card that earns crypto-based rewards.
More widely, Visa has presented an optimistic vision for digital currency adoption—a reversal of an earlier, more aggressive approach. Visa’s changing position on crypto is to ensure that it retains its rate of leadership in the payment industry. Currently, over 25 cryptocurrency wallets are linked to Visa’s systems.
The credit card company is also helping to form legislation on digital assets around the world, including collaborating with the World Economic Forum to create guidelines on the use of digital currencies by the central bank.