Per a Reuters report, crypto exchange Binance will launch a popular product in Brazil, one of the most dynamic regions for the nascent asset class. The crypto exchange will roll out prepaid cards for its users in the country.
According to the report, Binance is trying to deploy initiatives to “broaden the connection between traditional finance and crypto” in the region. The company’s product is still in beta testing, but it will be available for users in the coming weeks.
Binance Expands Its Reach In Latin America
Mastercard and Binance created the Binance prepaid card in collaboration with Mastercard. The financial product will allow users in Brazil to shop, pay for bills and services, and spend in the million merchants associated with the Mastercard network.
As Bitcoin reported in August last year, Binance rolled out its prepaid card in Argentina. The card allows users to spend funds directly in crypto to “reduce the gap between” legacy and new payment rails. The product automatically converts any crypto to fiat upon checkout.
To access the product, users must complete a Know Your Customer (KYC) process and present a valid national Identification Document (ID). Users can earn additional rewards and access cashback when using the card.
When the Binance prepaid card was launched in Argentina, Walter Pimenta, Executive Vice President for Product and Innovation at Mastercard Latin America and the Caribbean, said:
Our work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay. Together with our partners, Mastercard has been leading the payments industry in enabling entry to this exciting new world, helping bring millions of additional users into crypto and other digital assets in a safe and trusted manner.
Crypto A Solution In Times Of Economic Uncertainty?
In the region, crypto adoption has been high and trending to the upside. Argentina and Brazil are two of the largest economies in Latin America, and both are facing economic crises with high inflation and currency debasement.
In this context, crypto payment and products have become a solution for everyday people looking for access to stable forms of payment. Maximilian Hinz, General Director of Binance in Latin America, added:
Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow. By using the Binance Card, merchants continue to receive fiat and the users pay in cryptocurrency they choose. We believe the Binance Card is a significant step in encouraging wider crypto use and global adoption and now it is available for users from Argentina.