Ether.fi Launches Blockchain-Based Credit Card: Ether.fi Cash

Ether.fi Launches Innovative Blockchain-Based Credit Card: Ether.fi Cash

Despite being around for over a decade, blockchain technology has struggled to find widespread applications beyond speculative investments and basic peer-to-peer transactions. However, Ether.fi aims to change this narrative with its newly announced blockchain-based credit card, Ether.fi Cash. This initiative, unveiled on Monday, is in collaboration with Scroll, a layer 2 network built on Ethereum, to bring this groundbreaking credit card to market.

Ether.fi Cash is designed to empower users to spend fiat currency while leveraging their cryptocurrency assets as collateral. This means individuals can retain their crypto holdings and continue earning yields while making everyday purchases. The card is currently undergoing internal testing at Ether.fi and is set to begin shipping to pre-order customers on September 16.

Read more: Who Needs an Off-Ramp? Ether.fi Plans Visa Card for Crypto Degens

The partnership with Scroll is expected to enhance transaction efficiency for cardholders and offer a variety of crypto-based rewards. In an interview with CoinDesk, Sandy Peng, co-founder of Scroll, highlighted the significance of their network, noting that it hosts one of the largest markets for the Aave lending platform. “If you put 10 Ethereum into Aave and you use this credit card, then for you it’s going to be the cheapest credit card in the world that you can find,” she remarked.

According to a press release from Ether.fi, users of the Cash card will enjoy a generous 3% cash-back incentive on all transactions, without any restrictions. This physical Visa credit card is designed to be compatible with popular mobile payment systems, such as Apple Pay.

Ether.fi co-founder Mike Silagadze mentioned, “The first, probably 10 to 20,000 people, are going to be crypto ‘degens,’ like DeFi enthusiasts.” DeFi, or decentralized finance, refers to blockchain-based financial tools that allow for investment without intermediaries.

Scroll operates as a zero-knowledge rollup on top of the Ethereum blockchain, essentially serving as a sister blockchain that facilitates low-cost transactions. As the settlement layer for Cash, Scroll will enable features related to DeFi lending and borrowing, allowing users to use their crypto assets as collateral for purchases made with the card.

In discussions with CoinDesk, the companies disclosed that Scroll was selected as the settlement layer for Ether.fi Cash partly due to its ability to lower gas fees, which could make gasless transactions possible for cardholders. Peng explained that Scroll’s chain abstraction features will allow users to utilize Cash without being concerned about the specific blockchain they are using. “No one cares about what chain you’re on; people just care about whether it’s a good product,” she emphasized.

At this time, the card will not be available in the United States, likely due to the uncertain regulatory environment surrounding the decentralized finance sector in the country. The tentative list of countries where Ether.fi’s new credit card will be available includes the UK, Hong Kong, UAE, Thailand, Brazil, Turkey, France, Germany, Italy, Portugal, Spain, Denmark, Estonia, Netherlands, Poland, and the Czech Republic, as stated by Silagadze.

Ether.fi Cash is not the first attempt within the crypto industry to develop a credit card, as previous initiatives have struggled to gain mainstream traction. However, Ether.fi and Scroll are optimistic that their approach will yield different results this time. Silagadze aims to attract non-crypto users as well, asserting, “There’s just no other card that gives you 3% cash-back without crazy restrictions.”

Peng added, “I think it’s the first time I’ve been able to get my friends who are outside of crypto interested” in a crypto product, highlighting that “it’s genuinely a better credit card product” rather than just being “a better crypto product.”