First Crypto Cashback Card Launched in Russia for Organic Food Retailer

First Crypto Cashback Card Launched in Russia for Local Organic Food Retailer

TalkBank, one of the crypto pioneers in Russia’s financial sector, has joined forces with local organic food retailer LavkaLavka to launch the country’s first debit card with cashback in cryptocurrency.

Also read: Alex Mashinsky: Cryptocurrency Adoption at World Blockchain Forum

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Cashback? How About Cryptoback

As of June 20th, TalkBank has been issuing LavkaLavka cards, which can be purchased at the retailer’s stores or ordered from the bank’s web site and via messaging services.

TalkBank positions itself as Russia’s first bank that operates exclusively over messaging services, specifically Telegram and Viber. The bank has also been actively exploring the crypto space and earlier it issued Russia’s first crypto payment card.

Holders of LavkaLavka debit cards issued by TalkBank will collect cashback points for all purchases from the retailer, which will be calculated in BioCoin, LavlaLavka’s token. Points can be later used for purchases from LavkaLavka.

LavkaLavka promised “a very convenient” procedure for accumulating cashback points, saying that the cashback scheme will be part of “an innovative customer loyalty program” also including other retailers.

About 1,000 LavkaLavka cards have been already pre-ordered, while the retailer hopes to sell about 7,000 cards before the end of the year.

The card’s retail price is 3,000 rubles ($47 USD), and users will be charged no service fees. Holders of LavkaLavka cards will also be entitled to discounts on various services provided by TalkBank.

Looking at the Big Picture

At this point, it is not clear, if LavkaLavka’s scheme will be in compliance with the country’s financial regulations. In any case, Russia’s crypto legislation is yet to be enacted, so, at least for now, the food retailer is in the clear.

Founded in 2009, LavkaLavka is one of Russia’s first organic food retailers, and it currently runs several retail stores and restaurants across the country, as well as an online store.

Over the past year or so, LavkaLavka and its founder Boris Akimov have also been among the pioneers of using crypto in the Russian economy.

In early 2018, LavkaLavka did an ICO, raising over $16 million and exceeding its hard cap of $15 million.

LavkaLavka’s BioCoin is expected to become the centerpiece of an ecosystem aiming to support local farmers producing organic food. Currently, it serves as a utility token, providing its holders with discounts on organic foods and various locally farmed products sold by LavkaLavka.

Meanwhile, earlier this year, Akimov revealed plans to issue a personal token in a move to tokenize his own skills, knowledge, and experience.

Do you think debit cards that “cryptoback” can become popular, or will they just be a passing fad? Let us know what you think in the comments below. 

Images via Pixabay, Twitter

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