Canada’s First Bitcoin Credit Card Secures Major Investment

Global cryptocurrency investment fund FD7 Ventures has invested in BitcoinBlack, Canada’s first-ever Bitcoin Credit Card, by purchasing 33% of the company’s Class A voting common shares.

While the percentage of shares bought is known, the exact investment amount was not disclosed. However, it is believed to be a significant boost in funding for the fledgeling new-age credit card company. It is believed BitcoinBlack, which brands itself as “The World’s Most Exclusive Metal Black Card”, will use the cash injection to accelerate their growth plans for the company.

Big year ahead for BitcoinBlack

It is the first significant piece of news for BitcoinBlack in 2021, which will likely prove to be a watershed year for the company. The crypto credit card business plans to deliver its inaugural batch of 1000 credit cards to its initial Canadian customers by 15 June. It is a significant step because, to keep their promise of exclusivity, the batch will be the only credit cards BitcoinBlack sends out this year.

“We invested in BitcoinBlack because it is a big step toward the mainstream adoption of Bitcoin and crypto across Canada. It gives Canadians the ability to use Bitcoin as a means to make purchases in a format that they are already familiar with,” said FD7 Ventures Managing Partner Prakash Chand before taking a dig at the competition. “It’s also a lot ‘cooler’ than, say, the American Express Black Centurion,” he joked.

BitcoinBlack made the step into the mainstream by tying its credit card offering to VISA, which means it will now be accepted anywhere in the world that accepts those cards. On top of that, the company is offering many incentives to convince people to give the unique credit card a try.

“Not only will our customers be able to spend their Bitcoin worldwide wherever VISA is accepted, but our cardholders will be eligible for many VIP perks like access to an exclusive private jet, luxury car, and hotel deals, along with admission to special invite-only crypto events,” said BitcoinBlack Chief Marketing Officer Mark Holland.

Cryptocurrency hitting the mainstream

Cryptocurrency is already accepted for transactions in many industries. In hospitality, for example, it is possible to book hotel rooms on Expedia and pay with crypto. You can also shop for furniture on Overstock and buy Xbox games using the world’s most modern currency.

It is also accepted in the iGaming industry, where it is used for online gambling in Canada with casinos such as 7Bit Casino that allow bitcoin transactions. The addition of this credit card to the mix will only accelerate cryptocurrency’s journey to the mainstream.

Due to intelligent marketing, credit cards have been seen as a symbol of status and prestige in Western culture, and this is especially true of black credit cards made out of shiny metal. BitcoinBlack is ideally placed to enter the market as a VIP-level card as the first-ever Bitcoin credit card.

It is also no secret that Chand is a massive fan of cryptocurrency. The FD7 Ventures has predicted that Bitcoin’s market cap could be as high as $10-trillion in the next few years. With that as an anchoring belief, it should come as no surprise they are investing in anything cryptocurrency they can get their hands on. He is especially interested in the next generation of investors entering the market today.

“The new generation of retail investors who got burned on Robinhood will turn to the cryptocurrency markets. We will see a lot of stimulus checks invested in the crypto market over the stock market,” he said, according to Business Wire. “It’s pretty cool to see this young generation learning to invest.”

Canadian Condominium Company Invests In Bitcoin

FD7 Ventures are not the only Canadian company to double down and back the future of Bitcoin. According to Thorton Place Condominium Corporation (TPCC) official announcement, the company became the first Canadian condominium company to have direct physical exposure to Bitcoin on the open market after it invested CAD$25 000 in the cryptocurrency.

The Regina-based company made the purchase through the Cryptocurrency trading platform Kraken. While the investment seems a bit small, TPCC stated their intention to accelerate its acquisition of more Bitcoin over the next six to 12 months.

“Our Board determined that a small investment of approximately 5% of the overall Reserve Fund and 6% of the monthly Operating Fund contributions into Bitcoin will permit Thornton Place to gain a limited exposure to a high-performing asset class without jeopardizing any of the long-term goals of the corporation and its owners. Prior to making the investment, the Board adopted a policy governing its management,” the company said in an official statement.

Bitcoin and taxes

The cryptocurrency market in Canada is already quite large and growing at an alarming rate. According to a report on Finance Magnates, the total market capacity of cryptocurrency in Canada recently overtook the county’s gross domestic product (GDP).

It is undoubtedly an attractive investment proposition at the moment, but that growth has also come at the cost of increased scrutiny from the authorities. In a landmark ruling in the Canadian Federal Court, the judge ordered Toronto-based cryptocurrency trading platform Coinsquare, one of the country’s biggest, to hand over the details and trading information of all Canadians using the platform. According to the Canada Revenue Agency, they will use the information to ensure all Canadians trading on the platform are being correctly taxed for their crypto trading income.

The initial application would’ve required Coinsquare to provide the CRA with data for all of their clients, not just Canadians, and the online marketplace considers it a victory that they were able to protect most of their client data in the end.

“Instead of providing the CRA with all client data dating back to 2013 as was initially requested, Coinsquare and the CRA have agreed that information relating to 90-95 per cent of our clients will not be disclosed. We hope that our victory will set a precedent for other companies in the cryptocurrency industry to defend their clients’ privacy and to limit any disclosure to only what is absolutely required under Canada’s tax law.”

This article does not necessarily reflect the opinions of the editors or management of EconoTimes