Nexo debuts dual function Mastercard for European citizensNexo, a Bulgaria-based decentralized lending platform, has unveiled a Mastercard offering both debit and credit functionalities exclusively for European Economic Area (EEA) residents. This marks a significant step in financial innovation, aiming to provide a seamless experience for managing digital assets.
Nexo’s card with debit and credit capabilities
The Nexo Card allows transactions in multiple stablecoins, including euros, U.S. dollars, and British pounds. It offers an annual interest rate of up to 9% on stored balances, a feature uncommon in traditional financial products. For credit transactions, the card uses major cryptocurrencies like Bitcoin as collateral. Users can earn up to 2% cashback with an annual interest rate of 16% on utilized credit lines. The card’s technology enables automatic conversion of cryptocurrencies to fiat currencies during transactions. To ensure security, Nexo has partnered with Ledger and Bakkt for insurance on custodied assets. The card also integrates with mobile payment systems like Apple Pay and Google Pay.
Nexo’s entry into the EEA market comes amid regulatory challenges. Earlier this year, the company faced legal scrutiny in Bulgaria over allegations of violating Anti-Money Laundering laws and sanctions. Despite being based in Bulgaria, Nexo does not offer its services there, highlighting the complexities of operating in a regulated environment.
Furthermore, Nexo’s new Mastercard is compliant with Know Your Customer (KYC) regulations and is available only to verified EEA residents. It imposes no foreign exchange fees for transactions up to 20,000 euros per month and has a monthly ATM withdrawal limit of 10,000 euros.
The Nexo Card’s launch coincides with a period of increased regulatory scrutiny in the crypto industry. According to the European Central Bank, the EEA is actively working on a digital euro project, which could introduce new regulatory guidelines affecting hybrid financial products like Nexo’s card.
Moreover, data from the European Central Bank indicates that card payments accounted for 49% of total non-cash transactions in the EEA in 2021, suggesting a ripe market for Nexo’s innovative offering. Therefore, the card serves as a significant milestone in fintech and a potential indicator of how crypto services might adapt to future regulatory changes.
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