The BlockFi exchange and savings company has announced a credit card that will earn rewards in Bitcoin. The firm claims it to be the first credit card of its kind.
Users who already have accounts or the BlockFi app can apply to the waiting list to get the new credit card which features cashback rewards that will automatically be converted into Bitcoin.
BlockFi Announces ‘World’s First’ Bitcoin Rewards Card
Along with the terms, BlockFi also released photos of the card itself. For fans of something that feels hefty and valuable, the BlockFi credit card will be metal — a trend that became popular with Crypto.com’s cards.
What’s more, BlockFi boasts, it will be the first card of its kind with the Bitcoin logo printed on it.
It’s no surprise that BlockFi is coming out with its own crypto card. The company has previously partnered with several established firms such as Fidelity Investing.
Likewise, it has been generally friendly and compliant with regulators.
Truly the First?
BlockFi is not the only major player in the U.S. offering bank cards. Coinbase, whose card is available in 30 countries, is already taking applications from the United States.
Coinbase already has a waitlist available to U.S. participants for its crypto card that also offers rewards of up to 4%. Users with Coinbase can get 4% cashback in Stellar Lumens (XLM) or 1% back as BTC. It is not available in all jurisdictions.
Likewise, Crypto.com has previously released cards with extensive rewards such as Netflix and Spotify subscriptions. These cards, however, require staking tokens to receive the full benefits.
Crypto.com has also had to block withdrawals because of shady dealings on its platform.
Therefore, it is also not clear if BlockFi’s claim of having the “first” card to offer such rewards is valid.
BlockFi’s 1.5% BTC cashback is higher than what is offered on Coinbase, though. And more importantly, it’s a credit card that will allow users to carry balances. Coinbase’s offering is a debit card that spends cash or crypto directly from user accounts.
Another perk of the BlockFi card is that new users who spend $3,000 in the first three months of owning their card will get a $250 bonus. A downside, however, is that the card comes with a $200 yearly fee.
The card will function with the help of Evolve and Deserve banks. The firm hopes cards will be mailed in the Spring of 2021.
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