Ether.Fi to Launch Visa ‘Cash’ Card on Scroll Network

Ether.fi, recognized primarily for its liquid re-staking service, aims to revolutionize this by introducing a blockchain-powered credit card named Ether.fi Cash. On Monday, they revealed their intention to collaborate with Scroll, a secondary Ethereum network, to make the credit card available to the public.

Ether.fi Cash allows users to utilize their cryptocurrency holdings as security for spending fiat currency, providing a means to keep crypto assets while earning interest and making regular purchases. The card is already being utilized within Ether.fi and will begin shipping to pre-order customers on September 16th.

As an analyst, I’m excited about our new collaboration with Scroll. This partnership is all about boosting the effectiveness of transactions for our cardholders, and it also offers a variety of rewards based on cryptocurrencies.

In an interview with CoinDesk, Scroll’s co-founder Sandy Peng highlighted that their network boasts one of the most extensive markets for the Aave lending platform. Essentially, if you deposit 10 Ethereum into Aave and then utilize this as a sort of credit card, it will be the least expensive option available to you worldwide.

Based on a statement from Ether.fi, they’ve started accepting pre-orders for their new Cash Card. This card offers a 3% cashback reward on every transaction without any limitations. The card will be issued as a physical Visa credit card and is designed to work seamlessly with mobile payment systems such as Apple Pay.

Mike Silagadze, co-founder of Ether.fi, mentioned that the initial users, around 10,000 to 20,000 individuals, will likely be passionate enthusiasts in the crypto world, particularly those involved with Decentralized Finance (DeFi), often referred to as ‘degen’ – short for ‘degenerate.’ DeFi is a term that describes financial services built using blockchain technology and operates without intermediaries.

A zero-knowledge rollup, managed by Scroll, functions as an auxiliary chain on the Ethereum blockchain. This secondary chain facilitates transactions at a lower cost for users.

By serving as the settlement foundation, Scroll empowers Cash to activate its Decentralized Finance (DeFi) lending and borrowing functionalities. This enables users to utilize their digital assets as security for transactions conducted with the Cash card.

CoinDesk was informed by the companies that Scroll was chosen as the underlying platform for Ether.fi Cash due to its ability to potentially lower gas fees, enabling gas-free transactions for Ether.fi Cash users. As stated by Peng, Scroll’s chain abstraction capabilities, which will facilitate gasless transactions, will allow people to utilize Cash without worrying about which specific blockchain they are using.

According to Peng, it doesn’t matter where the product comes from, people are only concerned with whether it’s of high quality or not.

Option: The Ether.fi credit card won’t be accessible in the United States temporarily, possibly due to the uncertain regulatory landscape of the decentralized finance sector within the country. For now, countries on a tentative list for receiving this new credit card include: United Kingdom, Hong Kong, UAE, Thailand, Brazil, Turkey, France, Germany, Italy, Portugal, Spain, Denmark, Estonia, Netherlands, Poland, and Czech Republic. Silagadze shared this information with CoinDesk.

As a crypto enthusiast, I’ve witnessed attempts in the past to introduce cryptocurrency-based credit cards, but none have managed to penetrate the mainstream market successfully. However, with Ether.fi Cash, I’m hoping for a change. Alongside Scroll, they aim to make this new venture a success and bring crypto transactions into everyday life more seamlessly than ever before.

Silagadze aims to attract individuals who aren’t currently using cryptocurrency, stating, “There simply isn’t any other card offering a 3% cash-back incentive without burdensome limitations.

In a nutshell, Peng mentioned that this is the first time he has managed to pique the interest of his non-crypto friends towards a unique credit card product, as opposed to merely a crypto product. He emphasizes that it’s an exceptional credit card solution rather than just being a part of the crypto realm.