New Credit Card Will Offer Rewards in Bitcoin

Blockrize is developing a credit card that will offer rebates in cryptocurrency. Instead of earning miles, cash back, or travel credit you’ll earn bitcoin or ethereum.

Somehow merely dropping the word “bitcoin” makes some people believe they have a business model. Blockrize doesn’t yet have a bank issuing partner. And the company’s founder only just “started investing his own savings in cryptocurrency in September.”

They hope the credit card will also serve as a cryptocurrency wallet, and that the tax treatment of bitcoin and ethereum will be worked out eventually. On the one had these are rebates and shouldn’t be taxed, on the other hand moving bitcoin from Blockrize to the consumer could be a taxable transaction (capital gain on the sale of the bitcoin access at the point it’s transferred).

And at the end of the day this is really just a proposed 1% rebate card. So other than people easily distracted by shiny objects, there really shouldn’t be much of a market for it.

Indeed the no annual fee Citi Double Cash Card is now even offered with a signup bonus of $100 after $500 in purchases within 3 months.

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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