Brazil and Argentina are set to initiate the distribution of specialised cryptocurrency cards thanks to Visa and its partnering network.
In a first for Latin America, the Visa-powered cards will enable customers to receive cashback in Bitcoin for each payment they make, whether online or in-store.
A similar programme was launched by Visa in 2021 in a partnership with Argentinian crypto exchange Lemon Cash. Unlike the new cards, whose purpose is strictly being a mechanism to use crypto for purchases, the previous scheme was voluntary, where Visa clients could sign up for a 2% Bitcoin cashback on every transaction with their ordinary card.
The payments giant has outlined further plans for the region, stating that its working with Lemon Cash towards the introduction of prepaid cards for Argentine citizens in conjunction with crypto trading platforms Crypto.com and Satoshi Tango.
Colombia, Mexico, and Peru are also known to be in the firm’s plans for introducing crypto cashback cards. In Brazil, Visa is already working towards popularising crypto, with the company striking deals with crypto firm Alterbank and neobank Zro Bank.
The market for cryptocurrencies is not looking well, however. As a result of the sudden death of the now infamous Terra Luna Coin that went from $85 to less than a cent seemingly overnight, trust in the crypto market has been on the decline, with investors pulling out and causing the value of digital assets to fall across the board.
Most notably, Bitcoin – the most expensive digital currency – has fallen below the psychological threshold of $30,000 that was otherwise considered a guaranteed minimum by many crypto aficionados.
Many governments are starting to consider the introduction of regulations to prevent such a dramatic fluctuation, with the US being the most vocal supporter of that discussion. However, the general crypto user base stands firmly against it, as that would completely neutralise crypto’s core idea of being of decentralised value.