Debit Cards

Bit2Me and Mastercard launch debit card with crypto cashback

The new debit card builds on technology already in place in the existing Bit2Me crypto card, but this time, card holders are eligible for up to 9% crypto cashback.

The merger of Web2 and Web3 tools continues as crypto-backed debit cards become more mainstream.

In an announcement on Feb. 10, Bit2Me, the largest Spanish cryptocurrency exchange, revealed its new cashback debit card in partnership with Mastercard.

The original Bit2Me card works for its users via the Mastercard network that hosts millions of businesses worldwide. This new update offers users up to 9% crypto cashback for all purchases made with the card online or in-store.

Leif Ferreira, the CEO and co-founder of Bit2Me, told Cointelegraph that the use of already known Web2 financial tools like debit and credit cards comes with the hope of greater adoption of this “revolutionary” technology

“[The] goal is that any user from anywhere in the world has easy access to the limitless world of Web3 financial services, at the touch of a button.”

The card and wallet support eight cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Ripple (XRP), Solana (SOL) and Polkadot (DOT), along with the stablecoin Tether (USDT).

The company reportedly plans to add additional currencies throughout the year. Bit2Me is currently available to users in 69 countries around the world. However, users in the European Economic Area (EEA) are only eligible to apply for the virtual version of the card.

Bit2Me has had service expansion on its radar for some time, after its initial announcement in 2021 to offer services globally. Back in July, the exchange was quick to jump to help 100,000 blocked crypto investors onboard onto its platform after they wereshut out from the defunct local Spanish trading platform 2gether.

Meanwhile, Mastercard has also been active in offering new services and opportunities for users and clients in the Web3 space. It has chosen at least seven blockchain and crypto startups to be a part of its fintech accelerator program in the last year.

The company also partnered with Polygon to launch a Web3 musician accelerator program, focusing on the intersection of the music industry and emerging technologies.

On Jan. 31, Mastercard announced a new effort with Binance to launch their second prepaid crypto card in Latin America.

Japan’s International Payments System will test plastic cards for CBDC

Japan Credit Bureau will develop its CBDC infrastructure in collaboration with IDEMIA and Softspace.

Japan Credit Bureau (JCB), a Japanese analog to international payments systems like Visa or Mastercard, announced the start of its central bank digital currency (CBDC) infrastructure testing. The project will assumably prepare the payments platform for a national CBDC, which is currently being tested by the Bank of Japan (BoJ).

The infrastructure project, announced by the company in local media, will come under the title JCBDC and aims at adjusting the JCB’s existing credit card infrastructure for CBDC payments. The France-based provider of facial recognition technology IDEMIA and Malaysian Softspace will collaborate with JCB in the platform’s development.

The platform will consist of three major directions — a touch payment solution, an issuance and provision of plastic cards for CBDC and a simulation of the working CBDC environment. JCB also plans to adjust the mobile payment tools and QR codes, but in the later stages of testing.

JCB plans to develop a payment solution by the end of 2022 and start the demonstration experiments at actual stores by the end of March 2023.

The BOJ shared a three-phase trial outline for its CBDC back in Oct. 2020. The second phase of the trials, which would test the technical aspects of the issuance of the digital yen, should start this year. According to the BoJ governor, the digital yen could launch by 2026, and the decision won’t be made by the central bank alone.

There is still no certainty about the project launch or the possible scope of its implementation. In January, the former head of the BOJ’s financial settlement department advised against using the digital yen as a part of the country’s monetary policy.

JCB is not a newcomer to digital innovations — it started a pilot of a digital identity interoperability system based on blockchain technology in collaboration with Fujitsu Laboratories in 2020.

Mastercard taps Paxos to launch crypto trading for banks

Mastercard will deploy its technology to integrate crypto trading into banks’ interfaces, while Paxos is set to provide its trading and custody services.

Mastercard officially announced on Oct. 17 a new program to enable financial institutions to bring crypto trading capabilities and services to their customers.

Called “Crypto Source,” the program is designed to allow users to buy, hold and sell cryptocurrencies, complemented by Mastercard’s proprietary Crypto Secure solution for additional security and compliance.

The tool is launched in cooperation with Mastercard’s existing partner Paxos Trust Company and is reportedly expected to launch in Q4 2022. Paxos is known for providing similar services to global payment giant PayPal, which launched its first crypto services in late 2020.

Within the new partnership, Paxos will provide crypto asset trading and custody services on behalf of the banks, while Mastercard will deploy its technology to integrate crypto trading into banks’ interfaces.

Ajay Bhalla, president of Mastercard’s cyber and intelligence unit, pointed out the company’s growing crypto expertise and commitment to the market. He mentioned Mastercard’s recent crypto-related investments, including acquisitions of the crypto intelligence service CipherTrace in September and the digital identity platform Ekata in April last year.

Announcing the news, Mastercard referred to the 2022 Mastercard New Payments Index, reporting that 29% of respondents globally hold cryptocurrency as an investment. Another 65% of respondents reportedly indicated a preference for crypto services to be provided by their current trusted financial institution.

“What we are announcing today is a connected approach to services that will help bring users safely and securely into the crypto ecosystem,” Bhalla noted.

Paxos’ head of strategy Walter Hessert also highlighted the scale of Mastercard’s global network of financial institutions. According to the executive, the new tool will provide banks and creditors with the “most trusted way to offer safe, reliable crypto assets.”

Mastercard’s latest crypto initiative comes amid the total crypto market capitalization falling about 60% since the beginning of 2022. According to Jorn Lambert, Mastercard’s chief digital officer, it would be “shortsighted to think that a little bit of a crypto winter heralds the end of it.”

“As regulation comes in, there is going to be a higher degree of security available to the crypto platforms, and we’ll see a lot of the current issues getting resolved in the quarters in the years to come,” Lambert reportedly stated.

Mastercard has been actively working on various crypto and blockchain-related initiatives in recent years. In January 2022, Mastercard announced a collaboration with the Coinbase exchange to allow Coinbase NFT users to make purchases using Mastercard’s cards.

In October 2021, Mastercard partnered with the digital asset firm Bakkt to allow its United States-based customers to buy, sell and hold digital assets through custodial wallets.

Global payment giant Mastercard continues its efforts to promote cryptocurrency adoption by developing a new tool allowing banks to trade cryptocurrencies like Bitcoin (BTC).

FTX and Visa partner to permit crypto payments in 40 countries

The FTX token surged over 7% on the news that Sam Bankman-Fried’s company, FTX, would roll out a debit card in partnership with payments giant Visa.

Spending cryptocurrency may become a lot easier. FTX, one of the world’s largest crypto exchanges, has partnered with payments giant Visa to roll out debit cards in 40 countries worldwide.

The move would allow FTX users to pay for goods and services using debit cards that boast “zero fees.” Plus, card ownership is free, according to the company website.

Sam Bankman-Fried, the most influential person in crypto according to Cointelegraph’s Top 100 in 2022, has long touted his desire to unveil an FTX debit card. His company’s decision to partner with legacy payment rails — as opposed to crypto payment rails such as the Lightning Network — aligns with his views that the future of Bitcoin (BTC) as a payments network is not viable.

The FTX token, the native cryptocurrency of the FTX trading platform, spiked 7% on the news, reaching highs of $25.62. The token’s all-time high is some way off, however, at almost $80.

*FTX price over the past 24 hours. Source: CoinMarketCap*

For Visa, the development would rival competitor Mastercard’s recent forays into crypto. Chief financial officer Vasant Prabhu said “Even though values have come down, there’s still steady interest in crypto,” referring to the 2022 crypto bear market.

Cointelegraph has reached out to FTX for comment and will update when possible.