According to an official announcement by the Avalanche Foundation, the foundation has announced the launch of the Avalanche Card, which can be used for real-world payments.
In the introduction, the foundation states, “The Avalanche Card is a consumer card that allows you to make purchases with the value of encrypted assets at any place that accepts Visa. The Avalanche Card is not a bank and is not covered by FDIC.”
However, unlike regular cryptocurrency debit cards, the official emphasizes that the Avalanche Card is a “credit card” and the data is not reported to credit reporting agencies. Other details have not been disclosed. However, based on the official illustration, the Avalanche Card is likely to operate by using the value of assets in the custodial wallet (acting as collateral) as the user’s available credit limit. Supported assets include USDC, wAVAX, sAVAX, etc. If users fail to make timely credit card payments, the assets in the wallet may be forcibly liquidated to repay the debt.
The Avalanche Card will initially be made available to residents of Latin American and Caribbean countries. Additionally, the official emphasizes that citizens of Cuba, Venezuela, Nicaragua, Russia, North Korea, Syria, Iran, as well as Crimea, Luhansk, and Donetsk, regardless of where they reside, are not eligible for registration.