Users of the large cryptocurrency exchange Gemini will soon get another convenient way to add coins to their account. The company has partnered with Mastercard to issue its own Gemini Credit Card this summer.
The company promises up to 3 percent cashback for almost every use of the card. Although holders will spend in dollars, they will receive some of that money back in BTC or more than 30 other cryptocurrencies on the exchange. Such an opportunity will surely attract a huge number of users who want to replenish their own stocks of coins at the expense of ordinary spending.
Let’s start with an explanation. Cryptocurrency cards are not a new topic. For example, the Binance exchange announced the release of a similar product back in March 2020. The essence of the card was to connect to the user’s account on the cryptocurrency exchange and spend coins from the balance.
At the time of payment, cryptocurrencies are converted into the national currency of the country in which the user is located and sent to the seller’s account. Thus, you can pay with your own blockchain-based coins in almost any store in the world.
In addition, the receiving party itself will not know that the buyer made the payment in cryptocurrency, which was instantly transferred to fiat. And this is an additional point for security, because against the background of the current growth of coins, their holders continue to attract the attention of robbers and criminals. Accordingly, it is better not to talk about your connection with the blockchain and assets based on it.
How to get cashback in cryptocurrency
As a reminder, Gemini first announced its credit card back in January. This happened after she bought a startup Blockrize, which was working on a cashback mechanism in a crypt using cards. Clients from the Blockrize waitlist were transferred to the Gemini commitment, that is, at least 140 thousand people should receive the exchange’s new credit card.
Gemini Chief Operating Officer Noah Perlman noted that during the pandemic, hotel bonus points, air miles and cash rewards are losing their relevance. Therefore, the concept needs to be revised. Here is a replica of an exchange representative quoted by Decrypt.
The Gemini credit card offers people the opportunity to earn bitcoins from purchases. This is one of the most efficient asset classes in recent years.
As we have already noted, it will be possible to receive the award not only in bitcoins, but also in other cryptocurrencies. According to sources, we are talking about Ethereum, the Dai stablecoin and UNI, which is the native token of the Uniswap decentralized exchange. According to the founders of the exchange, the Winklevoss brothers, cashback will be credited to customers’ accounts instantly, rather than monthly. And this will allow customers to quickly respond to changes in coin rates and use them.
Since acquiring the startup, Gemini has clarified the details of its cryptocurrency rewards and has chosen the Mastercard network to service its credit cards. The information was confirmed by Linda Kirkpatrick, President of Mastercard North America. Here is a quote from a representative of the card issuer.
Consumer choice is at the heart of Mastercard’s strategy. It is about giving people flexibility in how they pay and being able to anticipate their changing preferences.
Mastercard has a long history of partnerships with cryptocurrency firms that issue their debit cards: Wirex and BitPay are examples. They also fulfill their obligations to convert cryptocurrencies into ordinary non-cash payments, that is, it is not digital assets that move through the network, but the US dollar.
However, in February, Mastercard announced that it would begin “directly supporting digital assets” in 2021 to minimize the inefficiencies caused by back and forth conversions of funds. Although this is not about Bitcoin, said Anne Cairns, Executive Vice Chair of Mastercard.
Bitcoin does not behave like a payment instrument. It is too volatile and takes too long to complete the transaction.
In other words, Mastercard is more interested in stablecoins – coins whose value is tied to the value of conventional currencies like the dollar or euro. However, all this did not prevent the company from entering into the aforementioned partnership with Gemini. Now exchange clients will begin to receive pleasant bonuses directly to their exchange account, even from ordinary transactions in dollars.
We believe that this initiative of the Gemini exchange will benefit both the platform and the mass adoption of cryptocurrencies in the world in general. Nevertheless, now the current owners of coins will be interested in using the card to receive a cryptocurrency cashback, which can seriously increase in value in a few days or weeks. At the same time, more conservative investors who are not yet ready to spend their own funds on coins directly will have the opportunity to earn crypto in a different way. This means that, in general, attention to the blockchain industry and its assets will only grow.