Credit card aims to offer BTC, ETH rewards
Customers will be able to select their desired rewards cryptocurrency and change it at any time.
A new, upcoming credit card plans to reward customers with the cryptocurrency of their choice for purchases.
The blockrize credit card will offer fee-free cryptocurrency rewards, in the form of either bitcoin (BTC) or Ethereum (ETH), to the value of 1% for each purchase made. These will be deposited into users’ accounts. Customers will reportedly be able to select their desired rewards cryptocurrency and change it at any time.
blockrize claims to it will hold the “vast majority” of assets offline and employ “rigorous security measures”, including encryption and two-factor authentication for certain account actions, including withdrawals.
However, the blockrize card cannot be used to make purchases in cryptocurrency, only US dollars.
Cardholders will be able to use the blockrize app to pay credit card bills, view online statements and check their cryptocurrency rewards balances. The blockrize website also offers an annual “crypto back calculator”, allowing customers to enter their monthly spending average to see what their total crypto rewards might be.
For example, if you spend an average $1,000 per month ($12,000 annually), you would receive $825 worth of bitcoin rewards in one year. This is the equivalent of 6.7% cash back on purchases. If you were to compare this to 1% cash back on purchases using a traditional credit card, you would receive just $120 in one year.
The rates of return were determined using Coindesk and Ether.io data on bitcoin and Ethereum daily prices for the year beginning 1/1/17 and ending 1/1/18. Monthly spending was averaged out over each month with returns applied the day after rewards would have been earned, according to blockrize’s crpyto back calculator.
Customers will be able to send cryptocurrency to other wallets, and while transactions between blockrize accounts are fee-free, transactions outside of blockrize will incur a network fee. Users can sell their crypto rewards at any time through their blockrize account and then transfer these to personal bank accounts.
Currently, blockrize is offering an early access waitlist for potential cardholders with no launch date set.
blockrize is a San Francisco-based financial technology company and says that its card will be accepted “everywhere major credit cards are accepted, both internationally and domestically”.
The company will turn a profit by collecting the processing fee merchants pay every time you use your card.
Last month crypto exchange Coinbase began preventing users from adding new credit cards as a payment method. The exchange also recently created a new e-commerce crypto payment option for merchants.
In February, Bank of America expressed concerns over the costs and risks associated with competition it faces from cryptocurrencies and the various businesses, exchanges and technologies that support them.
Crypto enthusiasts should be aware that the Internal Revenue Service (IRS) has established a taskforce to track offenders with undeclared assets, including tax evaders who utilize cryptocurrencies to avoid contributions.
Compare a range of options, including card type, features and providers to find the right credit card for you.
You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.
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