The world’s leading cryptocurrency exchange Binance has partnered with international financial services giant MasterCard to introduce a prepaid crypto card in Brazil. These are two of the world’s leading companies in their respective industries, and the duo plans to bring a new type of financial product to the Brazilian community. The new prepaid card is still being tested and will be widely available soon, bringing convenience and accessibility to crypto holders in the country.
On January 30th 2023, Binance and MasterCard announced that they are bridging the gap between existing financial services and the growing crypto ecosystem. Like any other traditional debit card, the Binance prepaid card will allow users to easily convert and spend their crypto holdings online and in person. Brazil is in the top 10 markets for Binance globally and will now be the second country in Latin America to have this product.
How does the Binance prepaid card work?
The Binance prepaid card is designed to give users a seamless transaction where their crypto assets are changed to fiat currency in real-time at the point of procuring. Users can choose which assets they want to spend or hold, and it is expected to support multiple cryptocurrencies. Experts at Bitcode method official mentioned after they researched the matter that the Binance card will be issued by Dock, allowing both existing and new Binance users in Brazil with a valid national ID to pay for goods and services, with cryptocurrencies, including Binance USD (BUSD), Ether (ETH) and Bitcoin (BTC) at MasterCard merchants. Users can select the preferred currency they intend to use in the App.
Binance prepaid card users are expected to withdraw a maximum of 45,000 pesos which is 241 US dollars per day, and 180,000 pesos which is 964 US dollars per month. With a limit of up to 90,000 pesos ($482) on daily purchases, monthly buys can be at most 360,000 pesos ($1 929). According to the statement, Binance will charge a 0.9% fee for each transaction, including 8% in crypto cash-back and zero fees on ATM withdrawals.
The Binance App and website allow cardholders to manage their cards on the card dashboard. The card dashboard will enable users to view their transaction history and access customer support. General Manager at Binance of Brazil, Guilherme Nazar, said: “Brazil is an extremely relevant market for Binance, and we’ll continue to invest in new services for local users, as well as contribute to the development of the blockchain and the crypto ecosystem in the country.” Nazar added, “Payments are one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow. We believe the Binance card is a significant step in encouraging wider crypto use and global adoption, and the openness of Brazilians to innovations makes the country a great market for this release.”
According to MasterCard President of Brazil Marcelo Tangioni, Brazilians are active cryptocurrency investors. Tangioni noted, “Brazilians are eager to use cryptocurrency in addition to an investment asset. Today we take an exciting step on our crypto journey, which brings together the strengths of our highly reliable global network and Binance’s infrastructure to support consumer choice for their payments.” According to Brazil’s Federal Tax Office, there are around 1.5 million individual and business crypto investors in the country, with 49% of Brazilian consumers being involved in at least one crypto-related activity compared to 41% of the global average.
Crypto developments in Brazil
Brazil is known as one of the top markets in interest across the globe, as crypto adoption in the country is on the rise. Last year in 2022, Santander started experimenting with crypto custody with the plan to offer crypto trading services. This led to Brazil’s parliament passing a bill that seeks to establish a stringent regulatory framework as a means of payment all over the country, potentially boosting the adoption of digital assets in the South American nation. The country’s involvement in the crypto community has attracted more companies as they would like to tap into the growing demand for these services. Brazil’s President has also approved a crypto bill regulating BTC to be used as payment.
Brazil is following in the footsteps of its neighbour Argentina, where digital currencies like BTC and stablecoins have become increasingly popular. The Binance prepaid card could boost digital assets’ interest and improve the region’s financial inclusion. Meanwhile, Binance intends to broaden the connection between crypto and traditional finance; it will be fascinating to see how this new product evolves and impacts the financial landscape of Brazil in the coming years. However, it is still being determined when the card will be available in the country, but we promise to keep you informed on any new developments regarding this project.
