News
Focus on wider adoption of cryptocurrencies with simplified transfers
Mastercard has launched its Mastercard Crypto Credential, facilitating the first pilot peer-to-peer (p2p) transactions that simplify and secure blockchain transfers.
The latest offering will allow users of Bit2Me, Lirium and Mercado Bitcoin exchanges to send and receive cryptocurrency using easy-to-remember aliases instead of cumbersome blockchain addresses. This new feature is designed to improve the simplicity and security of transactions, promoting wider adoption of cryptocurrencies.
Debut of Mastercard P2P crypto transactions
According to the official Press release, Mastercard Crypto Credential currently connects the Latin American and European corridors, aligning with Mastercard’s expansion into the digital asset ecosystem and integrating financial solutions. New partnerships are also being formed to further extend the reach and capabilities of the ecosystem.
Users in Peru, Chile, Portugal, Argentina, Guatemala, Panama, Mexico, Brazil, Paraguay, Spain, France, Switzerland and Uruguay will be able to make both cross-border and domestic transfers between various currencies and blockchains. Foxbit has become the new crypto wallet provider to join the Mastercard Crypto Credential pilot program, thus reaching a wider audience. Additionally, Lulubit users will have access through its integration with Lirium.
Mastercard said the launch of p2p transactions marks the first use case for Mastercard Crypto Credential, with potential future expansions into NFTs, ticketing and other payment methods driven by market trends and regulatory standards.
In a statement, Walter Pimenta, executive vice president of Product and Engineering, Latin America and Caribbean at Mastercard, said:
“As interest in blockchain and digital assets continues to increase in Latin America and around the world, it is essential to continue providing trustworthy and verifiable interactions across public blockchain networks. We are excited to work with this dynamic set of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”
Elimination of transaction complexity
Mastercard Crypto Credential also seeks to verify interactions between consumers and businesses on blockchain networks. The goal is also to ensure that users meet specific verification standards and confirm that the recipient’s wallet can accept the transferred asset.
The service also eliminates the complexity for consumers to determine which assets or blockchains the recipient supports by exchanging metadata. The goal is to increase trust and certainty in transactions.
Additionally, it supports the exchange of information on travel rules for cross-border transactions, a regulatory requirement designed to ensure transparency and prevent illegal activity.