- Binance users can store crypto on their cards and pay at Mastercard merchants.
- Argentina has one of the world’s highest inflation rates at 64%.
- Dollar-pegged stablecoins are in high demand in the country.
The prepaid card aims to bridge the gap between cryptocurrencies and everyday purchases, according to the announcement. It added that Argentina was the first Latin American (LATAM) country to get the product.
Binance Card is still in a beta phase, but it is the firm’s latest effort to boost cryptocurrency adoption and digital payments.
— CZ 🔶 Binance (@cz_binance) August 4, 2022
Crypto Card For Global Payments
The card issued by Credencial Payments will allow new and existing Binance users in the country with a valid national ID to make purchases and pay bills with cryptocurrencies. More than 90 million physical and online Mastercard merchants across the globe will accept the card.
Crypto stored on the card will be converted to fiat in real-time, which is then sent to the merchant. Additionally, cardholders can earn as much as 8% in crypto cashback on eligible purchases and get zero fees on ATM withdrawals. Transactions and payments can be viewed and managed on the Binance website and mobile app.
Executive Vice President of Products and Innovation at Mastercard Latin America, Walter Pimenta, said that the firm’s “work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay.”
Maximiliano Hinz, general director of Binance in Latin America, added, “Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow.”
The move comes at a time when Argentinians are suffering a cost of living crisis due to epic inflation. The country has one of the highest inflation rates in the world at a whopping 64% for June, according to Trading Economics. It is expected to reach 90% by the end of the year.
Many people have already turned to holding dollar-pegged stablecoins such as Tether (USDT) and Circle’s USDC to hedge against a rapidly devaluing Peso. Since the same time last year, the Peso has lost more than a third of its value against the greenback. As a result, there is a premium for stablecoins on Argentine exchanges due to the demand.
Argentina’s President has just sworn in the third new economy minister in a month. Sergio Massa has pledged to stop printing money that helps fuel runaway inflation.
Crypto Markets Consolidate
Crypto markets have remained flat over the past 24 hours, with a marginal dip in total capitalization to $1.1 trillion. Around $50 billion has left the space since their weekend and seven-week high.
Binance’s BNB token has reacted well to the news bucking the daily downtrend with a gain of 2.5% on the day, pushing prices above $300 again. BNB has weathered the crypto storm a little better than its brethren since it has ‘only’ lost 55% since its May 2021 all-time high.