Bitcoin exchange CCEDK plans to launch Bitcoin-denominated debit MasterCard in June. To distinguish it from other products, authors called it NanoCard.

In the advertisement, CCEDK highlights a few obviously positive things about MasterCard:

“The card can be used to pay for goods and services anywhere in the world, for shopping online or to withdraw money from an ATM. Customers can spend BTC and, in future, other currencies directly from their CCEDK wallet.”

In this way the exchange hopes to turn every MasterCard ATM into a bitcoin ATM. It claims that all fraud cases will be dealt in full accordance with usual MasterCard procedures. In addition, the exchange also promises users “low commissions”.

According to the initial statement, the first 10,000 users to sign up will be free from the monthly fee. Yet there are some restrictions: the company plans to issue three types of cards with different limits on bitcoin payments and cash withdrawal. It is not exactly clear whether these three levels correspond to the “Standard”, “Silver” and “Gold” levels of fiat-based bank cards. Interestingly enough citizens of the U.S.A., Afghanistan, and some other countries will only be able to order a card of the basic level.

Commission for cash withdrawal will be 0.02 BTC plus 3% in fiat currency (the latter goes to MasterCard). The company will also take 0.005 BTC from any POS payment while MasterCard commission will be 1% in this case.

While CCEDK prepares their NanoCard another bitcoin exchange, Bit-x, has just launched bitcoin-denominated MasterCard. It allows connecting a bitcoin wallet to a traditional card product. The UK-based company stated that commissions were very low but did not disclose them. It also did not disclose the intermediary banks.

The real pioneer in this sector of bitcoin market is Xapo. This startup began providing bank cards nominated in bitcoin around a year ago. In the summer of 2014, a group of experienced entrepreneurs, including PayPal cofounder Max Levchin, invested $20 million in Xapo.