A few days ago, Fold announced a new credit card on the Visa network that offers cashback in Bitcoin.
The new card is not yet available, but it promises to allow payments in normal fiat currency in all places where the Visa network is accepted, with a 2% cashback in BTC.
The crypto Visa cards
In the market for several years now, there are debit cards funded in criptovalute.
These cards allow payments in fiat currency, but can also draw funds from deposits in cryptocurrencies. They are debit cards backed by a service that instantly converts crypto into fiat.
They are payment instruments widely used by those who have cryptocurrencies, even though they have a couple of drawbacks.
The first is that the selling price of crypto in fiat is automatically set by the platform at the time of conversion, which occurs at the time of payment. Therefore, the user has no control over this.
The second is that they can apply commissions on the exchange, or they can apply a spread to the exchange rate.
Fold: the VISA card with cashback in Bitcoin
The Fold card, on the other hand, is a classic credit card in fiat currency, which can be funded in US dollars (USD).
It is not distinguished therefore by the method of feeding or payment, but specifically for the cashback in Bitcoin.
In fact, it is a normal Visa credit card, which is used exactly like all other fiat currency credit cards, and from this point of view, it has little to do with the crypto debit cards mentioned above.
What distinguishes it, however, is the cashback in Bitcoin, since usually the cashback on credit cards is in fiat currency, that is, the same currency in which the payment is made.
This card provides up to 2% back in BTC on every purchase, like the previous Fold debit cards, but also offers credit services. In this way, you can also make credit payments in fiat currency and be rewarded in Bitcoin.
The rewards in Bitcoin on the VISA card of Fold
The company states that to date approximately 600,000 users have made transactions for over 2.5 billion dollars with their cards, also because standard users who use them can earn unlimited rewards in Bitcoin of 1.5%, while some Fold+ members can obtain rewards of 2% and various bonuses up to 250$.
On their official website, they also state that their users have so far cashed in almost 70 billion satoshi, or 700 BTC, equivalent to more than 60 million dollars.
The service was launched in 2019.
Currently, the company holds 1,000 BTC, making it one of the top 25 companies in the world by number of Bitcoin owned.
The comment
The CEO of Fold, Will Reeves, stated:
“Fold has already given the opportunity to hundreds of thousands of users to incorporate bitcoin into their daily lives. With this credit card, we aim to dethrone miles as the preferred reward for credit cards.
If the main mileage cards can process 1% of the US GDP, we are certain that the Fold Bitcoin Rewards Credit Card can reach the same heights. We are building the hub of personal finance, powered by bitcoin, to ensure that everyone has the tools to earn, save, and grow their wealth with bitcoin every day.
