By Markus David
Director of Professional Services
Cryptocurrency has captured the imagination of consumers and traders worldwide. Nonetheless, given the number of illicit transactions involving anonymous bitcoin wallets, it is natural that many consumers are cautious about digital currencies.
Mastercard and Nexo, a crypto lender, have joined forces to launch the first crypto-based credit card. The first of its type, news of this credit card will take crypto-assets into the mainstream. The card works by being linked to a line of cryptocurrency credit provided by Nexo’s services. This allows customers to make transactions using their crypto assets without having to sell bitcoin first.
The Nexo Mastercard is going to be available in Europe and use digital currencies as collateral. It should be noted that conventional credit cards are unsecured and have a credit limit. These cards, however, which have bitcoin collateral, are secured and customers have the option of using up to 90% of their crypto holdings.
This card can be used at 92 million merchants globally, has no minimum requirements for repayment, inactivity fees, and no FX fees for up to €20,000 monthly.
The Nexo Mastercard is terrific news for people who have wanted to join the cryptocurrency revolution but are a bit nervous about dealing with the blockchain. Since the card is backed with cryptocurrency, rather than using bitcoin directly, it has certain advantages that crypto-assets lack.
The Nexo Mastercard: Using Cryptocurrencies with Full Transparency
For instance, like any other credit card, the Nexo Mastercard holders have to produce their name, location, and other essential information that identifies them. People who make bitcoin transactions directly on the blockchain have to deal with anonymity and not knowing who is dealing with their money.
Therefore, people who are interested in cryptocurrency but are concerned with the unregulated nature of the blockchain may prefer to use Nexo Mastercard rather than deal with cryptocurrency directly.
Like any other type of credit card, If there is suspected fraud, customers can file a chargeback claim and if things go well, can have the money refunded to their credit card. For people who have disputes with merchants or brokers on the blockchain, there is no third party or regulator to deal with these complaints.
Will the crypto-backed credit cards make bitcoin transactions more secure? The development seems promising. Even with credit cards, there is no guarantee that customers will win a chargeback claim, but at least there is a process for disputes, unlike on the blockchain.
No matter how you make transactions, it is important to seek assistance if you have lost money to a fraudulent merchant or broker. MyChargeBack professionals have the technology and methods to track down your funds and discover where they are.
MyChargeBack Will Help You Find Your Funds on the Blockchain
If you have lost money to a cryptocurrency scheme, seek fund recovery assistance right away. Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive knowledge and working relationships with regulators and more than 450 law enforcement agencies around the world, as well as the solutions that can improve your prospects of getting your cryptocurrency back.