Payments giant Mastercard has shown increasing interest in cryptocurrencies, announcing new updates, partnerships, and the first peer-to-peer (P2P) transactions for users of its cryptocurrency service this week.
Mastercard Launches Peer-to-Peer Cryptocurrency Exchange Service
In a crucial move, the giant Mastercard platform announced the launch of a new peer-to-peer (P2P) digital currency payment service. This important step comes after the leading financial services platform realized the importance of early adoption of cryptocurrency technologies. The company said in its statement:
For the first time, exchange users will be able to send and receive cryptocurrencies using their Mastercard Crypto Credential crypto credentials, rather than blockchain addresses that are typically long and complex.
Mastercard Crypto Credentials are accounts that represent users and businesses on blockchain networks. They enable the payment company to perform verifications, especially regarding security. For example, they can verify that the receiving wallet is compatible with the token that the user is trying to send.
Initially, Mastercard’s new service is focused on prominent partners in Latin America and some European countries. It also cooperates with cryptocurrency exchanges such as Bit2Me, Lirium and Mercado Bitcoin.
For now, the solution will be available in a few regions: Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay. Then the company will consider expanding its new service to the rest of the world.
Last year, Mastercard’s Executive Vice President of Blockchain and Digital Assets revealed that the latter is committed to supporting innovation in the payments sector. He also spoke about the global payments intermediary’s quest to integrate, adopt and leverage innovative technology and leverage its potential.
Despite its interest in the modern financial industry, Mastercard is taking very cautious steps due to the lack of a real regulatory environment, in addition to the risks associated with digital currency services.
Mastercard’s entry into the world of cryptocurrency P2P payments could have a major impact on the cryptocurrency market. The move could encourage other major companies to do the same, allowing cryptocurrencies to be integrated into the global economy.
