The use of cryptocurrency-based credit and debit cards is gaining traction in Latin American countries. Users are gradually adopting the use of cryptocurrencies for payments. In the meantime, two major exchanges have announced plans to release crypto-enabled cards.
Bitso, a cryptocurrency exchange based in Mexico, and Ripio, a cryptocurrency company based in Argentina, have both announced plans to introduce cryptocurrency cards in the near future. Ripio would partner with Visa, while Bitso would partner with Mastercard.
latin Use of Cryptographic Playing Cards Expands Across Latin America
Recent years have witnessed a gradual erosion of the distinction between the conventional banking and cryptocurrency sectors. A growing number of traditional financial institutions are beginning to accept cryptocurrency deposits and provide related services.
Two large exchanges in Latin America, it has been reported, have decided to issue cryptocurrency cards to their customers. These cards would allow users to pay for goods and services with digital currencies.
Regarding Ripio, the company will collaborate with Visa to launch a globally accepted crypto card. Ripio hopes that their latest offering will increase the number of people who use cryptocurrency to make purchases.
The Visa Crypto Card, as reported by Ripio, will provide users with a 5% cashback on all purchases. One of the company’s executives, Henrique Teixeira, has stated that by the end of the year, more than 250,000 people will have access to the card.
And if you look at trading volumes, Bitso is another of the largest cryptocurrency exchanges in Latin America. In addition, the crypto company plans to issue a crypto card later this year.
Daniel Vogel, the chief executive officer of the cryptocurrency company, believes that the cryptocurrency market will emerge from its winter doldrums very soon. As a result, the company is demonstrating its belief in the potential of digital assets by taking this action.
Latin Americans Adopting Real-World Cryptocurrency Use
In addition, Vogel revealed that the company would be launching the cryptocurrency card in partnership with Mastercard. However, he did not provide a date for the launch, despite stating that a number of users eagerly anticipate the crypto debit card.
According to him, this payment method would be advantageous for its users, who can now pay for goods with cryptocurrency. He elaborated as follows:
The business has observed customer spending habits on the trading platform. On paydays, users deposit funds into the platform and exchange them for digital dollars. Then, they would convert it to Pesos so it could be used as payment. Crypto cards would make this process so much more streamlined.
Bitso’s cryptocurrency card offers a cashback incentive, similar to those offered by other regions’ cryptocurrency cards. The company stated that the card would be introduced first in Mexico.
Kaiko, a service that compiles data on the cryptocurrency market, confirms the timing of these launches. The report states that users in Latin America are interested in finding practical uses for cryptocurrencies like bitcoin, such as making online purchases.
They are not particularly concerned with trading. Consequently, exchanges are expanding to meet the needs of users.