Bulgarian decentralized lending platform Nexo recently rolled out a crypto Mastercard specifically for citizens of the European Economic Area (EEA). This product is designed to allow users to spend stablecoins like the euro, U.S. dollar, and British pound via debit transactions at over 100 million merchant terminals globally. An intriguing aspect of the card is the potential for up to 9% annual interest paid to stored balances.
On the credit side, the Nexo Card offers consumers the tempting option of using prominent cryptocurrencies such as Bitcoin as collateral. These transactions can provide up to 2% cash back and an astonishing 16% p.a. on used credit lines. The magic happens when the consumer uses the card, both debit and credit transactions on the spot convert the user’s crypto to fiat money.
Nexo further entices potential users with no monthly or inactivity fees and an absence of foreign exchange fees for up to 20,000 euros per month. Additionally, the card offers a generous limit of 10,000 euros in monthly ATM withdrawals. Once users successfully pass the Know Your Customer checks, they’re issued with both a virtual and physical card, both of which connect to digital payment giants Apple Pay and Google Pay.
However, the journey hasn’t been all roses and unicorns for Nexo. Earlier this year, their offices in Sofia faced a raid by Bulgarian police over allegations involving sanctions and anti-money laundering laws against Russia. Nexo responded with plans to sue the Bulgarian government for damages related to the incident. In the aftermath of these events, Nexo no longer services residents in Bulgaria.
While Nexo’s package seems attractive, it’s crucial to examine the offering from a more skeptical standpoint. First and foremost, for enthusiasts anticipating a global reach, the card is currently only available to citizens within the 30-country EEA. Furthermore, the earning potential of the card involves inherent risks tied to the often-volatile crypto market. Lastly, the conflict with Bulgarian authorities earlier in the year raises valid concerns about corporate governance.
In conclusion, Nexo’s offering appears to be a promising entrant to the crypto card game, marred with a fair share of potential downsides. It strikes a balance for EEA citizens who appreciate the flexibility of a debit and credit card with the bonus of harnessing their crypto assets. At the same time, it’s crucial to bear in mind that corporate integrity and market stability are vital for sustainable prosperity in the crypto world.
Source: Cointelegraph
