Binance and Mastercard launched a prepaid rewards program in Argentina that allows people to use crypto for everyday goods.
The card will allow users to buy items and pay bills using Bitcoin and other cryptocurrency, according to Binance, the largest crypto exchange in the world by volume.
Binance announced that its prepaid card will allow users to convert crypto they have on its app into fiat currency (US Dollars or Argentine Pesos) at any point in time. You can also get up to 8% in crypto cash back rewards.
Maximiliano Hinz, general director of Binance Latin America, stated that the Binance Card was a significant step in encouraging greater crypto use and global adoption.
The card is currently in beta mode in Argentina and will become widely available over the next few weeks. Users will not be charged for ATM withdrawals, according to the announcement.
Crypto is growing in Argentina: Blockchain analysis firm Chainalysis last Year ranked Argentina among the top 10 crypto users worldwide.
Bitcoin isn’t the only popular digital asset. Stablecoins–cryptocurrencies pegged to fiat currencies, like the U.S. dollar–are also finding a use case. Last week, Banfield , an Argentinian football club, received $6million in USDC, the second-largest stablecoin market cap, to pay for a player from Brazilian team Sao Paulo.
The Argentine government is concerned about capital flight as the pesos falls in value. Last month, the central bank announced that anyone who has bought Bitcoin or any digital asset within the last 90 days with pesos will not be able access the single-free exchange market and can only buy U.S. Dollars at the official rate.
The new Binance debit card could help crypto traders avoid these new restrictions. The new debit card from Binance could be used by a crypto trader in Argentina to access U.S. dollars equivalents in USDC or USDT stablecoins, and then spend the funds with the card, all without the need of a bank account or accessing the official exchange market.
Currently, Argentina has 64% inflation. This is one of the highest rates in the world. This affects everyday life in Argentina. Spending can become complicated because most people use U.S. Dollars and there are two currency rates: an official one and a black market one. Crypto might be a better option for some.
Binance already has a cryptocurrency Visa debit card. It launched last year. This allows Binance users to convert their cryptocurrency holdings in fiat at point of sale.