For now, the card is still in its beta phase, and Argentina is the first country in Latin America to have the product. Issued by Credencial Payments, the Binance Card will allow new and existing users in Argentina with a valid national ID to make daily purchases and perform financial operations such as bill payments using cryptocurrencies.
According to company officials cited by prnewswire.com, Mastercard hopes to bring millions of additional users into crypto and other digital assets. The crypto payments sector has room to grow, and the Binance Card aims to encourage wider crypto use around the globe.
Currently supported cryptocurrencies include Bitcoin and BNB, and payments can be done at more than 90 million Mastercard merchants around the world.
One of the prepaid card’s key features is that it converts cryptocurrencies to fiat currency in real-time at the point of purchase. Users can also earn up to 8% in crypto cashback on eligible purchases.
As for card management, customers can access the card’s dashboard in the Binance App or on the Binance website. The dashboard allows them to view their transaction history and access customer support if the need arises.
In July 2022, Binance decided to bring Bitcoin trading fees to zero. Binance also previously partnered with Latam Gateway in Brazil to solve the problems it had been facing with fiat movements in the country.
According to the Financial Times, cryptocurrency adoption in Argentina is currently on the rise. One reason behind the rise of crypto popularity in the country is high inflation, but also the strict limits on how many pesos can be converted into other currencies such as the dollar.
Speaking of limits, the same source revealed in May 2022 that Argentina’s central bank is tightening the rules when it comes to crypto. For instance, local financial institutions can no longer offer cryptocurrency-related services. Banking officials have stated that these new rules aim to mitigate crypto risks for both users and the financial system.
Despite this, the Financial Times indicates that crypto adoption in Argentina is on an ascending trend. The country hosts at least seven crypto exchanges where people can buy Bitcoin, including Lemon. Exchanges such as Lemon and Binance are exempt from the rules imposed by the central bank. As payment processors, their ability to pay and trade in cryptocurrency is not affected.
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