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Mogo, a publicly traded Canadian corporation, revealed on Monday that it is expanding the bitcoin rewards scheme that it uses with its prepaid Visa card to the operation’s Mogomortgage offering. Mogo users who use the Mogomortgage app will receive up to $3,100 in bitcoin whether they take out a new mortgage or refinance a current one.
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO), headquartered in Vancouver, has been increasingly gravitating towards cryptocurrency solutions over the last several years. Mogo announced an agreement with DMG Blockchain Solutions in 2018 and plans to open a bitcoin mining facility in British Columbia. Mogo executive Greg Feller clarified at the end of December 2020 that Mogo was following the wave of companies keeping BTC on their balance sheets. Mogo announced that at the end of the third quarter of 2020, the company spent 1.5 percent of its nett assets in bitcoin.
Mogo has also launched a new bitcoin loyalty scheme for Mogomortgage clients. “Mogo members who take out a new mortgage or refinance with Mogo will win up to $3,100 cashback deposited in their Bitcoin and Rewards account,” Mogo said on Monday.
David Feller, the founder and CEO of Mogo, claims that bitcoin use is only in its early stages. “Our bitcoin bonus scheme is all about offering more opportunities for our users to collect bitcoin,” Feller explained. “It is clear that we are only in the early stages of seeing investors add bitcoin to their investment accounts, just as companies are applying it to their balance sheets.”
Mogo’s founder continued:
Given the volatility and speculative nature of bitcoin, there’s an increasing number of Canadians who are looking for ways to participate without risking their own money, and our bitcoin rewards program meets this demand. As an independent mortgage brokerage, our goal has always been to help members get the best rate and the right mortgage, and now our new bitcoin rewards program will reward them with up to $3,100 in bitcoin.
Bitcoin incentives for prepaid cards have become very successful in recent years, and Mogo and Feller agree that this scheme would also fit nicely into the mortgage space. “The residential mortgage industry in Canada is a huge market priced at about $1.7 trillion, and we’re excited to give Canadians a better way to get a mortgage while still collecting bitcoin,” Feller stressed.
In addition, the CEO emphasises that, in comparison to conventional payout schemes, incentives paid in bitcoin have development advantages. “Bitcoin incentives have the distinct feature of being an asset class that will increase in value over time – $3,100 invested in bitcoin 5 years ago will be worth over $350,000 today,” Feller concluded.