Visa has partnered with BlockFi, a New York-based startup specializing in crypto-backed loans and savings accounts, to launch a new credit card that rewards users with Bitcoin (BTC), setting the stage for wider mainstream adoption of digital currency.
It has been reported that the new credit card will reward purchases with Bitcoin rather than airline miles or other cashback rewards. Cardholders will be eligible to receive 1.5% of their purchases back in BTC.
However, the card, which carries a $200 annual fee, will be issued by Evolve Bank & Trust. Although the credit card will be available to the general public in early 2021, BlockFi account holders will be able to sign up beforehand.
Zac Prince, the founder and CEO of BlockFi, said that the firm is “excited to add credit cards to our suite of products and expand Bitcoin’s accessibility to a broader set of consumers.”
The report said that The BlockFi partnership 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, the Senior Vice President and Global Head of fintech at Visa, said that the goal of the fast track program is to help innovative companies “scale with efficiency.”
Likewise, this is not Visa’s first foray into cryptocurrency. Earlier this year, the credit card company partnered with digital startup Fold to offer a debit card that earns crypto-based rewards.
Visa has outlined a positive vision for digital currency adoption — reversing an earlier, more hostile attitude.
Thus, the credit card company is also helping to shape regulations toward digital assets around the world, including working with the World Economic Forum to develop recommendations on the use of central bank digital currencies.