The Avalanche Foundation has announced a new crypto-powered payment card named the Avalanche Card, created in partnership with Rain. The card enables the use of digital assets for everyday transactions.
What is the Avalanche Card?
The Avalanche Card is a payment card that allows its holders to use cryptocurrency anywhere Visa is accepted. It is available as both a physical and digital card and initially supports AVAX, Wrapped AVAX (wAVAX), USDT, and USDC. Future updates will introduce support for additional cryptocurrencies, including bridged Bitcoin and other tokens. Crypto funds are converted to fiat when transactions are processed.
Why the Avalanche Card Matters
For millions of people in Latin America, Africa, and Southeast Asia facing high banking fees and limited access to financial services, the Avalanche Card provides an alternative financial solution. It allows users to bypass traditional banking restrictions and use their crypto holdings for everyday transactions. However, due to regulatory restrictions, the card is unavailable in certain regions.
How the Avalanche Card Works
Unlike typical prepaid crypto debit cards, the Avalanche Card operates more like a credit card. Users load the card with crypto, setting their spending limit at 50% of the USD value of their balance (to account for volatility). Transactions accumulate and are settled once a day at a fixed time, allowing cardholders to avoid selling assets at an inopportune moment due to market fluctuations.
The Avalanche Card represents a significant step in integrating cryptocurrency into mainstream financial processes, offering users the ability to use their digital assets more easily and conveniently in everyday life.
