Max Credit Cards, the Israeli payment and credit card super-brand holding more than 3 million credit cards announced that it had signed a strategic cooperation agreement with Bits of Gold towards launching a new and unique VISA credit card, MaxBack Crypto, with which will allow users to accumulate eligibility for cashback in Bitcoin depending on their spending with the card. Upon ordering the card, a dedicated account will be opened for the customer by Bits of Gold. The cashback amount accumulated in NIS will be transferred, and Bits of Gold will automatically convert it to Bitcoin. The MaxBack Crypto will be launched in the coming weeks, subject to the completion of regulatory requirements. Meanwhile, a preliminary registration for updates was launched.

Also, Bits of Gold, regulated under the Israeli Capital Market Authority, has reached agreements with the Tax Authority to significantly ease some of the bureaucratic burdens on Israelis interested in buying and selling digital currencies. The deal focuses on tax deduction from sellers of digital currencies in a "closed circuit" (directly to Bits of Gold, without accepting or passing on to others). It stipulates that the company itself will deduct the tax. This means that customers will be able to trade digital currencies without the need for independent reporting to the tax authority. At the same time, taxation will work smoothly and without any action required from the customer.

Ron Fainaro, CEO of Max, said: “We are proud to be the first financial entity in Israel to launch a credit card with a crypto cashback program. The momentum and great public interest in digital currencies developing worldwide cannot be ignored, and therefore, I believe in the importance of us being there for our customers. We are happy to be leaders in financial innovation in the cryptocurrency ecosystem in collaboration with Bits of Gold, the oldest Israeli company in this field. Together, we will provide the Israeli public, willing to enter this innovative field cautiously, with a connection to the world of digital currencies. With Max, anyone can own Bitcoin and take the first steps in this new domain."

Youval Rouach, CEO of Bits of Gold, said: “I am excited with the launch. Bitcoin and digital currencies are the new financial reality. The MaxBack Crypto credit card is an opportunity for many Israelis to comfortably take the first steps in this new reality, opening the door to enjoy the possibilities that the world of digital currencies offers. Our cooperation will allow Israelis to securely connect to this ecosystem and hold Bitcoin with unprecedented ease. Bits of Gold is in its tenth year of pioneering the field of digital currencies, and we are happy to work with a large-scale financial entity like Max, which welcomes innovation and strives towards it for its clients."

How will it work?

Bits of Gold will automatically open a dedicated account for every customer issuing the new credit card. Max will transfer ILS 1 to this account for every ILS 160 spent with the card (subject to terms of use), and these funds will be converted to Bitcoin. Holding the Bitcoin account will not incur additional costs to the credit card user. The market value of Bitcoin tends to fluctuate, and currently, one Israeli shekel is worth about ten micro-bitcoins, commonly known as bits. E.g., for monthly spending for ILS 5,000 with the MaxBack Crypto card, they will receive about 310 bits, based on the Bitcoin exchange rate on the day of its purchase, and these will be kept for them in a personal wallet. In this manner, customers will be able to accumulate Bitcoin over time, hold them safely and convert them back into ILS and to their Israeli bank account.

Max customers will be able to track their Bitcoin balance in the Max app and log in from there with a single click to their dedicated Bits of Gold account. There, MaxBack Crypto cardholders will be able to use their card to buy Bitcoin and Etherium, followed by other currencies, at a 6% discount off the purchase fees while accruing eligibility for additional Bitcoin cashback for these purchases. In addition, cardholders will enjoy all the benefits Max offers its members.