Cryptocurrency startup BlockFi has announced it will launch its bitcoin rewards credit card in the first quarter of 2021.
Through the card, users will receive a 1.5% cashback for every transaction made through the card, which will then be converted to bitcoin and placed into a BlockFi account in a regular monthly cycle.
According to Zac Prince, BlockFi CEO, the new offering will be the first of its kind. He said: “A lot of the debit cards that exist in the crypto ecosystem are the kind that are oriented around this idea of spending your crypto, which at least clients at BlockFi are not interested in doing. They want to hold their bitcoin and earn a yield on it.”
How it works
After applying and being approved for the card, customers will receive a credit limit in USD. Customers can then spend this limit each month, and if they pay their statement balance on time they will not be charged interest.
For every transaction that customers make, 1.5% cashback will accrue, which will automatically be converted to bitcoin and placed in a BlockFi account.
BlockFi is also offering a signup bonus of $250 in bitcoin after spending $3,000 or more on the card within the first three months. In addition, the card will have an annual fee of $200.
The company also has plans to add more features and offers over time. Prince added: “We’re not announcing what we’re going to do in year two yet. We intend – like we’re doing in year one – to make it as much of a no-brainer decision as we can for folks to hold the card.”
Visa is acting as the card issuing network, Evolve Bank & Trust provides the BIN, and Deserve is managing the payments flow technology.
The card will initially be available in the US only, but BlockFi has encouraged those from outside the US to join the waiting list so the fintech can let them know when the card is available in their region.