Do you prefer miles, cash, or Bitcoin? BlockFi partners with Visa to launch a credit card that offers Bitcoin rewards.

Do you prefer mileage, cash, or Bitcoin? According to Bloomberg, Visa and BlockFi are partnering to launch a new credit card that allows consumers to earn card rewards in the form of Bitcoin (BTC), setting the foundation for broader mainstream adoption of cryptocurrencies.

Cryptocurrency Rewards Credit Card

BlockFi, a New York-based startup focusing on cryptocurrency-backed lending products, had previously announced plans to launch a credit card by the end of the year. Yesterday, the company officially announced a partnership with global payment giant Visa, with plans to launch the card early next year. According to a report by Bloomberg, the unique feature of the new credit card is that it offers rewards in the form of Bitcoin, equivalent to 1.5% of the amount spent, instead of traditional rewards like airline miles or cash back. The card will have an annual fee of $200 and will be issued by Evolve Bank & Trust.

The credit card is expected to be launched in early 2021, with BlockFi account holders being able to pre-register for applications. Additionally, BlockFi is offering a promotion where cardholders who spend $3,000 in the first three months will receive $250 worth of Bitcoin (approximately 8.3%) as a reward.

Zac Prince, Founder and CEO of BlockFi, stated:

"BlockFi is excited to add credit card services to our product suite and expand accessibility to Bitcoin to a broader group of consumers."

Adoption of Cryptocurrency in the Payment Sector

This is not Visa's first foray into supporting cryptocurrency-related credit card businesses. In April of this year, the cryptocurrency startup Fold joined Visa's FinTech Fast-Track Program to issue debit cards that offer Bitcoin rewards to users while spending in dollars. The use cases of cryptocurrency in the payment sector have been increasing in recent years. According to a report, there are now over 25 cryptocurrency-related companies integrated with Visa's payment system.

Furthermore, another payment giant, PayPal, announced support for buying and selling cryptocurrencies earlier this year. Recent reports indicate that over 20% of users on its platform have purchased cryptocurrencies, and it is expected to enable cryptocurrency payments between consumers and its merchants next year. This gradual progress indicates that cryptocurrencies are slowly moving towards mainstream adoption.