No Further Exchange Needed: El Salvador's USDT Card Enables Direct Crypto Spending

El Salvador to Introduce First Self-Custody USDT Visa Card

El Salvador is on track to become the pioneer in launching a Visa card that allows users to spend USDT directly from their own wallets, marking a significant step in the mainstream adoption of stablecoins. This initiative, led by crypto payments company Truther in collaboration with Visa, is scheduled for release on January 29, 2025. The card enables holders to make purchases with tether (USDT) straight from their self-custody wallets, eliminating the need to preload funds or depend on third-party custodians.

Unveiled at the Blockchain Conference Brasil, this card addresses a major challenge for cryptocurrency users: the hassle of converting stablecoins to traditional currency or keeping assets on centralized exchanges. Instead, the card automatically deducts USDT at the point of sale, applying a 2% fee for currency conversions, while Brazilian users benefit from no IOF tax.

Empowering Users with Self-Custody and Privacy

Unlike conventional crypto cards that require users to maintain preloaded balances, Truther’s card ensures users retain full control over their assets. Initially built on the Polygon blockchain, there are plans to transition to the Liquid network to enhance privacy features. This strategy aligns with Visa’s broader efforts to modernize international payments. Earlier in 2025, Visa expanded its stablecoin settlement capabilities across the CEMEA region through a partnership with Aquanow, enabling quicker and more affordable transactions using USDC and other stablecoins.

Stablecoins Reshape Financial Infrastructure

The card’s innovative design demonstrates how stablecoins can help close gaps in traditional finance by supporting instant settlements and QR code payments, making it ideal for markets with round-the-clock payment systems. Visa’s collaboration with Aquanow highlights its commitment to streamlining cross-border transactions. Notably, Visa’s stablecoin settlement volumes have soared, reaching an annualized $2.5 billion, reflecting a growing appetite for faster and more cost-effective alternatives to legacy systems.

Latin America as a Testbed for Stablecoin Adoption

El Salvador’s embrace of the USDT Visa card is especially noteworthy, given its status as the first nation to recognize bitcoin as legal tender in 2021. This rollout could pave the way for broader stablecoin use throughout Latin America, where high inflation and limited access to banking services drive demand for innovative financial solutions. Truther plans to extend its services to countries such as Argentina, Mexico, Colombia, and Russia, and aims to integrate local stablecoins like tether gold and peso-linked tokens by early 2025. The company’s Swapix API, which enables instant crypto-to-fiat conversions, is already handling $40 million in daily transactions by connecting stablecoins to Brazil’s PIX instant payment network.

Industry Impact and Competitive Landscape

Experts see the USDT Visa card as a strategic move to attract fintech companies, neobanks, and traditional financial institutions looking for cost-efficient payment options. As stablecoin usage accelerates, Visa’s position as a global settlement platform could lead to increased transaction volumes and recurring revenue. Meanwhile, competitors such as Mastercard and American Express are also advancing their stablecoin initiatives, with Mastercard introducing tools for USDG transactions and AmEx exploring blockchain-based rewards programs.

Expanding Crypto’s Everyday Utility

For Truther, launching this card marks a significant step in making cryptocurrency practical for daily spending, moving beyond speculative trading. Founder Rocelo Lopes highlighted that the card allows users to pay for anything from hotel stays to everyday purchases without needing to preload funds, as transactions are settled instantly. This approach reflects the broader movement in decentralized finance toward prioritizing user autonomy and privacy.

Looking Ahead: Challenges and Opportunities

While the market continues to evolve, hurdles such as regulatory compliance and competition from new payment technologies persist. Nevertheless, the USDT Visa card’s emphasis on user empowerment and efficiency positions it as an attractive solution for both crypto enthusiasts and traditional financial players. With stablecoin transaction volumes expected to triple in the coming year, the partnership between Truther and Visa could set a new standard for integrating digital assets into the global economy.