The Avalanche Foundation has introduced the Avalanche Card, a payment card enabling users to spend cryptocurrency at traditional merchants. This innovation aims to make cryptocurrencies more accessible for everyday use.
What is the Avalanche Card
The Avalanche Card is a crypto-powered payment card created in partnership with liquidity provider Rain. It allows users to spend their digital assets wherever Visa is accepted, making crypto payments as straightforward as swiping a credit card. At launch, the card supports AVAX, Wrapped AVAX (wAVAX), USDT, and USDC. Future enhancements will include support for additional cryptocurrencies, like bridged Bitcoin and other tokens.
Why the Avalanche Card Matters
Millions in Latin America, Africa, and Southeast Asia face high banking fees and limited access to financial services. The Avalanche Card offers an alternative solution, enabling users to bypass traditional banking restrictions and utilize crypto holdings for daily transactions. It empowers financial freedom in underbanked regions and reduces dependence on banks for cross-border payments.
How the Avalanche Card Works
Unlike typical prepaid crypto debit cards, the Avalanche Card functions more like a credit card. Users load the card with crypto, which sets their spending limit at 50% of the USD value of their balance. Transactions are not immediately processed but are accumulated and settled once a day at a fixed time. This helps users maximize asset value and avoid selling at inopportune market moments.
The Avalanche Card opens up new possibilities for using cryptocurrencies in real life, simplifying and making payments more accessible for general use. However, users should consider potential tax implications depending on the country and type of assets used.
