Visa (V) has partnered with the cryptocurrency-focused finance company BlockFi to offer a credit card that lets users earn money back in the form of Bitcoin. The daily Bitcoin price fell.
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The card, called the Bitcoin Rewards Credit Card, is the latest sign of mainstream adoption for the cryptocurrency — a trend that has helped the digital coin’s value skyrocket this year.
In a blog post on Tuesday, BlockFi said anyone approved for a card would receive a monthly credit limit. For every transaction made on the card, 1.5% cash back will automatically be converted into Bitcoin and put into a BlockFi account monthly.
BlockFi is offering a sign-up bonus of $250 in Bitcoin, after users spend $3,000 or more on the card within three months. The card’s annual fee is $200. Visa, along with Evolve Bank and card provider Deserve, partnered with BlockFi to launch the card.
The cards could start shipping in the spring, BlockFi said. Any client of BlockFi’s with a funded interest account can join the wait list for the card.
Visa already offers a debit card, in collaboration with crypto startup Fold, to offer a Bitcoin rewards debit card. Visa and Coinbase also have a debit card that lets users spend cryptocurrency and earn cryptocurrency rewards.
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Bitcoin Price Falls
Bitcoin fell 1.3% to $19,082 on Tuesday, according to CoinMarketCap. The dip follows a massive Bitcoin price surge for much of this year, after other big financial and payments companies began allowing customers to use cryptocurrency more widely.
JPMorgan Chase (JPM) in October said its own digital currency had been put to commercial use for the first time. PayPal (PYPL) that month also said it would allow users buy and sell cryptocurrency from their accounts.
Square (SQ) has also allowed users of its Cash App to make automatic recurring purchases of Bitcoin. And in October, the mobile payment leader bought $50 million in Bitcoin, saying it “has the potential to be a more ubiquitous currency in the future.”
More investors have begun to regard Bitcoin as a decent place to hide out, as currencies elsewhere fluctuate.
The coronavirus pandemic has forced governments to inject stimulus into their economies, pushing interest rates and returns of government debt lower. The U.S. dollar has wavered on discussions in Washington over more stimulus. The U.S. election and the nation’s trade tensions with China have also added uncertainty.
Visa stock moved 0.4% higher to 211.20 in the stock market today. The stock is in a consolidation with a 217.45 entry. Shares have a 68 Composite Rating and a 75 EPS Rating. Mastercard (MA) added 0.7%.
PayPal rose 1.1% to 216.54. PayPal stock was still within range of a 209.12 buy point of a cup-with-handle base. Square stock slipped 3.8%.
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