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Mastercard Launches Crypto Credentials System to Simplify Crypto Transactions
MasterCard launched Mastercard Crypto Credential on May 29, allowing users to send and receive cryptocurrencies using simplified aliases instead of complex blockchain addresses, according to a Press release.
Mastercard Crypto Credential verifies interactions between consumers and businesses on blockchain networks, ensuring that users meet verification standards and confirming that the recipient’s wallet supports the transferred asset.
The system simplifies the process of knowing which assets or chains are supported by the recipient, increasing trust and certainty in transactions. Additionally, Mastercard Crypto Credential supports the exchange of travel rule information for cross-border transactions, a regulatory requirement to prevent illegal activities.
The system works by first verifying users to Mastercard’s standards, who then receive an alias to send and receive funds through supported exchanges. When you initiate a transfer, the system checks the validity of the recipient’s alias and wallet compatibility.
If the wallet does not support the asset or blockchain, the sender is notified and the transaction stops to avoid loss of funds.
Mastercard will initially support peer-to-peer (P2P) transactions, but may extend the service to non-fungible tokens (NFTs), ticketing and other payment solutions.
Latin America and the EU
Mastercard Crypto Credential is aimed at the Latin American and European markets. The service is available to users in several countries, including Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay.
The service is available on three major exchanges: Bit2Me, Lirium and Mercado Bitcoin.
Users of Lulibit, an exchange based in Panama and Guatemala, can also access the service through Lirium. Brazil-based cryptocurrency wallet provider Foxbit is also participating in the pilot ecosystem.
Mastercard intends to offer Crypto Credential to select users on a first-come, first-served basis and then expand the service to over 7 million users in the coming months.
Mastercard’s other efforts
Mastercard has pursued various other blockchain projects. His Multi-token network aims to improve the security, scalability and interoperability of crypto transactions. Its Crypto Source service, provided by Paxosallows banks to offer cryptocurrency trading to customers.
The company also has developed technology to tokenize central bank digital currencies (CBDCs) on various blockchains.
Mastercard supports several payment cards issued by crypto companies, including cards from Nexo, BybitSupport, Bitpay and Revolution.