Binance and Mastercard launch the Bitcoin Rewards Card in Argentina

Binance and Mastercard have launched a prepaid reward card in Argentina to help people spend cryptocurrencies for everyday goods in a country where the local currency suffers from one of the highest inflation levels in the world.

The card will allow users to buy things and pay bills with Bitcoin and other cryptocurrencies, according to to an announcement on Thursday from Binance, the world’s largest cryptocurrency exchange by volume.

Binance’s announcement added that the prepaid card will convert cryptocurrency users on its app into fiat currency (US dollars or Argentine pesos) in real time at the point of sale. Users will also be able to earn cryptocurrency rewards of up to 8%.

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“We believe Binance Card is an important step to encourage wider use of cryptocurrencies and global adoption and is now available to users in Argentina,” said Maximiliano Hinz, General Manager of Binance Latin America, in the announcement.

Argentina will be the first Latin American country to have the map, which is currently in beta mode and will be widely available in the coming weeks. The announcement added that users will not even be charged for ATM withdrawals.

Crypto gains ground in Argentina: blockchain analytics firm Chainalysis last year class the country among the top 10 cryptocurrency users in the world.

And Bitcoin isn’t the only popular digital asset. Even stablecoins, cryptocurrencies pegged to fiat currencies, such as the US dollar, are finding a use case. Just last week, the Argentine football team Banfield received $ 6 million in USDC, the second largest stablecoin by market capitalization, as payment for a player from the Brazilian club of Sao Paulo.

The Argentine government is worried about capital flight as the peso loses value, so last month it introduced new cryptocurrency-focused measures – the central bank She said that anyone who bought Bitcoin or any other digital asset in the last 90 days with pesos would not have been able to access the free single exchange market and buy US dollars at the official rate.

Binance’s new debit card could help cryptocurrency traders evade these new measures. A cryptocurrency trader in Argentina could, in theory, use their Binance account to access US dollar equivalents in the form of USDC or USDT stablecoins and spend those funds with the card, all without the need for a bank account or card. of credit. official account. Change market.

Argentina currently suffers from one of the worst inflation rates in the world, currently at 64%. This makes everyday life difficult for Argentines; spending can get complicated as most people use US dollars and there are two exchange rates: an official market and a black market. Cryptocurrencies may be a better bet for some.

Binance already has an encrypted Visa debit card: it launches last year and allows Binance users to convert their cryptocurrency holdings into fiat at the point of sale.

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