According to a Reuters report, crypto exchange Binance will launch its popular product in Brazil, one of the most dynamic regions for the new asset class. The crypto exchange will issue prepaid cards to users in the country.
According to the report, Binance is trying to spread initiatives to “expand the relationship between traditional finance and crypto” in the region. The company’s product is still in beta testing, but will be available to 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 bills and services, and spend with millions of merchants associated with the Mastercard network.
As Bitcoin reported in August last year, Binance rolled out prepaid cards in Argentina. The card allows users to spend funds directly in crypto to “bridge the gap between” legacy and new payment rails. The product automatically converts crypto to fiat at checkout.
To access the product, users must complete the Know Your Customer (KYC) process and provide 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 currency is built on a strong foundation to give people choice and peace of mind when they buy and pay. Together with our partners, Mastercard has led the payments industry to enter this exciting new world, helping to bring millions of additional users to crypto and other digital assets safely and securely.
Crypto The Solution In Times Of Economic Uncertainty?
In these areas, crypto adoption is high and trending upwards. Argentina and Brazil are the two largest economies in Latin America, and both are facing economic crises with high inflation and currency debasement.
In this context, crypto payments and products have become a solution for everyone looking for access to a stable form of payment. Maximilian Hinz, General Director of Binance in Latin America, added:
Payments are one of the first and most obvious use cases for crypto, but adoption has a lot of room to grow. By using the Binance Card, merchants continue to receive fiat and users pay with the cryptocurrency of their choice. We believe the Binance Card is an important step to encourage crypto use and global adoption and is now available to users from Argentina.