Mastercard and Binance have announced the launch of a bitcoin and crypto backed prepaid card in Brazil, Latin America’s largest economy.
According to a blog post, the Binance Card is currently in beta testing and is expected to be widely available in the country in the next few weeks. The Binance Card is currently already available in many European countries.
The Brazilian version will “allow all new and existing Binance users in Brazil with a valid national ID to make purchases and pay bills with cryptocurrencies.” It will charge a 0.9% fee per transaction involving bitcoin, according to the blog, and there will be an offered 8% in cashback on select purchases, while allowing ATM withdrawals without fees.
Brazil is one of the company’s top 10 markets, according to Binance, and the card will allow new and existing users in the country to pay bills and shop with cryptocurrencies at Mastercard merchants. The launch of the prepaid card is part of Binance’s effort to “broaden the connection between traditional finance and crypto.” The card has already been launched in Argentina and is being rolled out in Brazil next.
Brazil is one of the largest potential markets in the world, simply by the numbers alone. According to estimates, over 10 million of the country’s population of approximately 214 million utilize cryptocurrency. Brazil has also experienced high inflation rates since the start of the pandemic similar to the United States, leaving citizens with an appetite for sound money.