- Nexo has launched a new Mastercard designed for crypto users in the European Economic Area (EEA).
- The Nexo Card supports Euro, U.S. dollar, British pound, and stablecoins transactions, with features including debit and credit functionality with up to 9% annual interest on stablecoin balances.
- The card does not impose monthly or inactivity fees, offers generous foreign exchange transaction limits, and comes with a monthly ATM withdrawal cap.
Nexo, a decentralized lending platform, has announced the launch of a new Mastercard with features suited to European Economic Area (EEA) crypto consumers. The corporation is situated in Bulgaria and has since been exposed to regulatory scrutiny due to geopolitical concerns in the region.
The recently launched card offers transactions in U.S. dollars, euros, and British Pounds and stablecoins for over 100 million merchant terminals worldwide.
Features and Protected Assets
The Nexo Card is capable of both debit and credit transactions. The debit aspect allows users to spend stablecoins and offers up to 9% yearly interest on held amounts.
Regarding credit transactions, the card accepts major cryptocurrencies such as Bitcoin as collateral. Users can earn up to 2% cash back and a 16% annual interest rate on the credit lines. Ledger and Bakkt insure assets held in custody, according to Nexo.
In regards to fees, the Nexo Card purportedly has no monthly or inactivity fees. It also has a generous foreign currency limit, waiving monthly costs of up to 20,000 euros ($21,700).
Furthermore, users are limited to a monthly ATM withdrawal limit of 10,000 euros ($10,800). Following the successful completion of the Know Your Customer (KYC) verification processes, both a virtual and a physical card will be issued, and both types of cards can be linked to digital wallets such as Apple Pay and Google Pay.
Legal Issues and Operational Scope
While the card indicates an extension of services, it’s worth noting that Nexo’s corporate offices in Sofia, Bulgaria, were raided earlier this year, according to an initial Bloomberg report.
The corporation was accused of breaking Russian sanctions and anti-money laundering legislation. Nexo has responded by announcing plans to sue the Bulgarian government for damages incurred during the incident. Surprisingly, Nexo does not offer its services to inhabitants of Bulgaria, where the company has its headquarters.
Citizens of the EEA’s 30 member countries stand to benefit from a card that accepts both fiat and cryptocurrency. The Nexo Card‘s dual nature—used for both debit and credit transactions—provides a level of flexibility not often found in regular payment cards. However, like any financial instrument, the card comes with its own set of conditions and limitations that prospective users should be aware of, particularly the interest rates and limits on ATM withdrawals and overseas transactions.