Bulgarian-based decentralized lending platform Nexo has introduced a crypto-backed bank and credit Mastercard for citizens of the European Economic Area (EEA). With Nexo Card, users can convert their crypto assets into US dollars, Euros, and British pounds and use them for transactions. Nexo offers this service to citizens of 30 countries while providing numerous opportunities.
Assets Allegedly Insured by Ledger
According to the announcement made on August 31, Nexo Card will allow users to spend fiat currencies such as Euros, US dollars, and British pounds with bank transactions at over 100 million investor terminals worldwide. It was also reported that assets held in the user’s dedicated balance will earn up to 9% annual interest.
Meanwhile, Nexo Card’s credit transactions will offer cashback of up to 2% and annual interest rates of up to 16% on credit limits using major cryptocurrencies such as Bitcoin as collateral. When both bank and credit transactions are used at terminals, users can directly convert their crypto into fiat currency. Nexo claims that the stored assets are insured by Ledger and Bakkt.
Nexo Previously Faced Money Laundering Accusations
The company also states that the new Nexo Card has no monthly or transaction fees, no foreign exchange fees up to 20,000 Euros (21,700 dollars) per month, and a monthly ATM withdrawal limit of 10,000 Euros (10,800 dollars). After passing the “Know Your Customer” verification checks, users will be provided with a virtual card and a physical card, both of which can be linked to Apple Pay and Google Pay. The card can only be used by citizens of the European Union consisting of 30 countries.
Earlier this year, Nexo’s company offices in Sofia were raided by the Bulgarian police on allegations of violating sanctions against Russia and anti-money laundering laws. The company stated that it plans to file a compensation lawsuit against the Bulgarian government regarding the incident. Due to issues with the local government, Nexo does not provide services to citizens residing in Bulgaria.
