Mastercard announced its peer-to-peer crypto ecosystem, which is now available to users in Latin America and Europe. The credit card giant’s platform integrates with the Lirium, Bit2Me, and Mercado Bitcoin exchanges. Mastercard Crypto Credential gives users readable aliases that replace the long string of letters and numbers that have traditionally defined crypto wallet addresses.

The ecosystem also makes payments safer, verifying every user and interaction to make sure the right asset is routed to the right wallet.   “This pilot has great potential to bring further innovation in the cross-border payment space,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “Mastercard’s platform conducts the KYC processes to verify users, in addition to expanding its optionality of payment types to its customers for those who aren’t looking to convert their crypto to fiat, or who just want faster payments in general.” Simplifying the Exchange The often-complex crypto exchange process has been a barrier to entry for many users, and Mastercard’s crypto solution should simplify transactions.

There is added risk when digital assets are transferred cross-border, but all transactions on Mastercard Crypto Credential will be conducted in compliance with the Travel Rule, a regulation designed to identify and prevent illegal activity.  With the launch, users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay can now transfer multiple assets over disparate blockchains. Mastercard’s platform will initially integrate with the Lulubit wallet through the Lirium platform, and the Foxbit crypto wallet.  Centralized DeFi Mastercard Crypto Credential aims to be a centralized global digital asset exchange. While P2P transactions will be the first applications for the platform, the company hopes to expand the platform to support the exchange of NFTs, tickets, and other payment types.  While that functionality might be welcome to many, it also raises concerns about the growing centralization of digital assets that were designed to be decentralized.

The launch is the latest in an increasing trend of large financial institutions investing heavily in crypto-centric initiatives. Still, Mastercard’s global highway of connections could do more to accelerate crypto adoption than hinder it. “Mastercard is a payments giant, so the development and launch of this product will have positive trickle-down implications,” Hugentobler said. 0 SHARES 0 VIEWS Share on FacebookShare on TwitterShare on LinkedIn

By wesley grant
May 30, 2024 00:00
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