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Decentralized lending platform Nexo has announced the launch of a new Mastercard with features tailored for crypto users in the European Economic Area (EEA). The firm is based based in Bulgaria, and has since been subject to regulatory scrutiny over the geopolitical tensions currently happening in the area.
The newly launched card supports transactions in Euro, U.S. dollar, and British pound, and stablecoins for over 100 million merchant terminals globally.
Features and Insured Assets
The Nexo Card provides a dual functionality of debit and credit transactions. On the debit side, it allows users to spend stablecoins and promises up to 9% annual interest on stored balances. When it comes to credit transactions, the card employs major cryptocurrencies like Bitcoin as collateral. Users can expect up to 2% cash back and a 16% annual interest rate on used credit lines. emphasizes that assets held in custody are insured by and .
The future of #crypto payments is here.— Nexo (@Nexo) August 31, 2023
Introducing the world-first Dual Mode of our pioneering Nexo @Mastercard, featuring both credit and debit capabilities.
Experience the ease of debit coupled with the power of credit, earn rewards, and spend your way. ð§µ pic.twitter.com/FuHNUrSRNO
In terms of fees, the Nexo Card reportedly does not impose monthly or inactivity charges. It also offers a generous limit on foreign exchange transactions, waiving fees fror up to 20,000 euros ($21,700) per month. Additionally, users have a monthly ATM withdrawal cap of 10,000 euros ($10,800). Both a virtual and a physical card will be issued upon successful completion of Know Your Customer (KYC) verification checks, and both types of cards can be connected to digital wallets like and .
Legal Challenges and Operational Scope
While the card represents an expansion in services, it's worth considering that Nexo's corporate offices in Sofia, Bulgaria were subject to a police raid earlier this year, according to an initial . The company faced allegations of . In response, Nexo has announced plans to take legal action against the Bulgarian government for damages incurred during the incident. Interestinrgly, Nexo does not extend its services to residents in Bulgaria, where the company itself is based.
Citizens of the 30-country EEA stand to benefit from a card that integrates both fiat and crypto. The dual nature of the Nexo Card—facilitating both debit and credit transactions—offers a degree of flexibility not commonly found in traditional payment cards. However, like any financial product, the card comes with its own set of terms and limitations that prospective users need to understand, especially the interest rates and the caps on ATM withdrawals and foreign transactions.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.