Fintechs are trying to get more people into Crypto
Still, many investors remain sceptical towards cryptocurrencies.

The recent mainstream adoption of bitcoin is getting another "cashback" boost as emerging fintech companies plan to release new credit cards that would offer cashback on any purchase made in bitcoin. Considering the rapid increase in the value of bitcoin over the past 12 months, the idea seems tempting to many, as they can potentially earn more than they have spent in cashback. Even the crypto skeptics would by default enter the cryptocurrency "investment" sphere without risking their own money. "People aren't interested in spending Bitcoin right now, but they are interested in accumulating it. If people don't see Bitcoin as money yet, they will surely see it as a better reward," said Fold CEO Will Reeves recently. Fold, a San Francisco-based crypto startup, is one of the fintech companies that launched credit cards with bitcoin cashback. Although the cashback customers receive is 1% to 2%, over the past six months, customers have gotten an average of 8.5% back on all their purchases as the value of bitcoin has increased. Currently trading at $ 58,000, Bitcoin has appreciated almost 200% year over year. Another fintech company for crypto investors, BlockFi, offers a flat rate of 1.5% back in bitcoin on every purchase. So far, over 100,000 people have signed up. The company said the cashback will be converted into Bitcoin tokens that the cardholder can withdraw, trade, or use as collateral for a crypto-backed loan. This is another game where traditional banks that are still tired of offering old rewards are left behind. Chase Freedom Unlimited currently offers a $ 200 sign up bonus after spending $ 500 in the first three months of opening an account. In addition to 1.5% cashback on all purchases, it now offers bonus rewards when traveling as well as in restaurants and drug stores. With an annual fee of $ 0, Discover offers 5% cashback on spending up to $ 1,500 per quarter in categories that the customer activates. Visa could blow them away. Last year, both Fold and BlockFi teamed up with payment service provider Visa, which handles more than half of the total purchase volume on the credit card network in the United States. Larger institutional investors, like Visa, who jumped into the crypto market, helped drive the recent surge in bitcoin to record levels. In late January, Elon Musk added the word "bitcoin" to his Twitter profile. Just hours later, this caused a 15% rally in the value of the currency. The tweet followed Tesla's $ 1.5 billion investment in Bitcoin. Last October, payment company Square announced that it had purchased 4,709 bitcoins worth approximately $ 50 million, roughly 1% of Square's total assets. PayPal secured the first conditional cryptocurrency license from the New York State Department of Financial Services, the first approved company for a conditional bit license in New York State. And on Tuesday, Fidelity Investments and Square, among other things, announced they are forming a new trading group designed to lobby the regulatory environment surrounding bitcoin. are shaping the way bitcoin and other cryptocurrencies are regulated now that it is gaining so much mainstream attention.





