Mastercard Introduces New Initiative Simplify Crypto Transactions Curb User Errors
For Transactions Processed This Programme Mastercard Act Intermediary Verify User Identity
Mastercard is exploring ways to simplify crypto transactions, which could lead to the mass adoption of these digital assets for day-to-day businesses. The US-based card payments giant has introduced a new initiative to assess the use of its Crypto Credential programme. The aim of this programme is to ensure that people do not send crypto assets that are incompatible with certain wallets. Crypto exchanges Bit2Me, Lirium, and Mercado have been onboarded by Mastercard to assist in this pilot. Crypto wallet player FoxBit has also joined the initiative.
What Led Mastercard to Launch This Initiative?
Through its research, Mastercard noticed several instances of wrong crypto transactions. Complicated wallet addresses or technical errors caused by engagement of crypto tokens with wrong, incompatible blockchains emerged among the top reasons that led to financial losses for senders and recipients. This motivated Mastercard to create a solution that could mitigate such errors and streamline the transaction process.
Key Features of the Crypto Credential Programme
The Crypto Credential programme is designed to provide a set of common standards and infrastructure to enhance the safety and security of crypto transactions. By introducing verifiable identity information for users and their wallets, Mastercard aims to reduce the likelihood of mistakes and fraud. The programme will also enable more straightforward and reliable interactions between users and businesses in the crypto space.
Pilot Programme and Collaboration
In collaboration with crypto exchanges Bit2Me, Lirium, and Mercado, as well as crypto wallet provider FoxBit, Mastercard is testing this initiative in a controlled environment. The participants will help Mastercard assess the programme’s effectiveness and identify areas for improvement. This pilot phase is crucial for gathering data and feedback that will inform the full-scale rollout of the initiative.
Impact on Crypto Adoption
If successful, the Crypto Credential programme could significantly boost the adoption of cryptocurrencies by making transactions more user-friendly and reducing the risks associated with incorrect transfers. Businesses and individual users alike could benefit from a more secure and efficient way to handle crypto assets, fostering greater trust in digital currencies.
Future Prospects and Mastercard’s Vision
Mastercard’s move to simplify crypto transactions aligns with its broader vision of integrating digital assets into the mainstream financial ecosystem. By addressing the current pain points in crypto transactions, Mastercard hopes to pave the way for wider acceptance and usage of cryptocurrencies. The company’s proactive approach to innovation in the crypto space signals its commitment to staying at the forefront of financial technology advancements.
As per Mastercard, the use of its crypto credential P2P initiative represents the scope to expand and support the global remittance market. Founded in 1966, Mastercard today has a valuation of $411.33 billion (roughly Rs. 34,23,157 crore). In recent years, the company has shown an inclination towards exploring the crypto and blockchain avenues in revamping the existing financial systems.
