Bitcoin Credit Cards

In Canada, a “Bitcoin credit card” is a credit or payment card that lets you spend fiat (e.g. Canadian dollars) like a normal credit card, but gives you rewards in cryptocurrency—often Bitcoin—rather than traditional cashback or points.

These cards can offer crypto rewards at varying rates depending on tiers, staking requirements, or card plans.

When you use one, you still get billed in your local currency, and you need to pay back the card like any credit card. The crypto aspect shows up via rewards: for example, you might earn a percentage of your purchase value back in BTC, or have special bonus categories (e.g. groceries, gas, dining) that pay more crypto rewards.

However, using a crypto rewards or crypto-enabled card in Canada comes with tax and regulatory considerations. The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity, not currency, so when you “dispose” crypto (for instance, by converting rewards into CAD or using them via a card), that counts as a taxable event.

Pros of Bitcoin Credit Cards (Canada)

• Earn crypto while spending: Rewards in Bitcoin or other cryptocurrencies instead of traditional cashback or points.
• Build crypto gradually: Great for Canadians who want crypto exposure without buying it directly.
• Familiar usage: Works like a regular credit card for everyday purchases.
• Potential appreciation: Crypto rewards may increase in value if the market rises.
• Variety of options: Cards like Shakepay, Crypto.com, and Netcoins offer different reward tiers and features.

Cons of Bitcoin Credit Cards (Canada)

• Crypto volatility: Rewards can lose value if the market declines.
• Tax implications: CRA treats crypto as a commodity, so using or converting rewards can trigger taxable events.
• Higher fees: Some cards charge foreign transaction or conversion fees.
• Limited availability: Not all banks or issuers provide crypto reward cards; eligibility may require good credit.
• Complex tracking: Canadians need detailed records for accurate tax reporting (dates, CAD value, cost basis).