Ether.Fi set to Launch Visa Cash Card on Scroll Network
The volatile nature of the crypto space has made it a hub for speculative investment since the rise of blockchain technology. The lack of intrinsic value of crypto assets has been specified as reason for such volatility.
Ether.fi’s new partnership with scroll to make Scroll the settlement layer for real world transactions for Ether.fi Cash, attempts to solve the intrinsic dilemma.
Ether.fi, best known for its liquid restacking services, on Monday announced a plan with layer 2 network, Scroll, to bring credit card to the market.
Scroll is a layer 2 blockchain on the Ethereum network enabling apps to scale through its bytecode level compatibility. Providing reliable scaling solution for Ethereum.
The partnership is aimed at enabling users spend fiat using crypto as collateral through Ether.fi Cash. The new blockchain based credit card provides cardholders with access to borrow funds against their stake. Providing opportunity for cardholders to earn passive income through their stakes, while making everyday purchases.
The card is currently in use within Ethe.fi, while shipping of the pre-order Visa Cash card to customers will commence September 16. The card will be issued as a physical Visa card. Designed to be compatible with mobile payment providers like Apple Pay, users are provided with 3% cashbacks on every purchase, with no cashback cap on purchase options.
Why Ether.fi Picked Scroll for its Ether.fi Cash Card
Ether.fi co-founder Mike Silagadze acknowledged that while long term goal is to have wide usage among broader audience beyond the immediate crypto ecosystem, the first sets of users will likely be crypto degens and DeFi enthusiasts.
A sentiment echoed by Sandy Peng, Scroll’s co-founder who stated that “It’s genuinely a better credit card product.”
Further stating that “If you put 10 Ethereum into AAVE and use that credit card, it’s the cheapest credit card in the world for you to find.”
It was also revealed that scroll was chosen as the settlement layer for Ether.fi cash partly because of its potentials to reduce gas fees due to its chain abstraction features. Making gas free transactions a possibility for cardholders.
Scroll uses zero-disclosure technology on top of the Ethereum blockchain, a kind of related blockchain that allows users to make low-cost transactions.
Where will the Cards be Available?
Preliminary list of countries that will receive the new Ether.fi credit card includes the United Kingdom, Hong Kong, UAE, Thailand, Brazil, Turkey, France, Germany, Italy, Portugal, Spain, Denmark, Estonia, Netherlands, Poland and the Czech Republic.
It will however be unavailable in the United States at the moment due to regulatory concerns in relation to the Decentralized Finance DeFi industry in the country. “
