Mastercard Introduces New Mastercard Crypto Credential Solution for Secure and Efficient Peer-to-Peer Transactions
Payment giant Mastercard has announced the launch of its new “Mastercard Crypto Credential” solution, which aims to provide cryptocurrency exchange users with a simpler and more user-friendly peer-to-peer transaction process.
The Mastercard Crypto Credential solution ensures that all users involved in transactions comply with a set of verification standards established by Mastercard. In simple terms, the Mastercard Crypto Credential system verifies user identities based on a set of standards before they engage in blockchain transactions, ensuring compliance with security requirements.
Once verified, users will receive an alias similar to an Ethereum domain name. This alias can be used on all platforms that support Mastercard Crypto Credentials to send and receive funds, eliminating the hassle of entering complex wallet addresses.
When users want to transfer cryptocurrencies, such as Ethereum, the system checks if the recipient’s alias is valid and confirms whether the recipient’s wallet supports Ethereum and compatible blockchains.
If the recipient’s wallet is not supported, the system blocks the transaction and notifies the sender, thus preventing fund losses. This increases transaction transparency and enhances user confidence and security when engaging in digital asset transactions.
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Currently available on three exchanges
In addition to making the transaction process safer and more convenient, the Mastercard Crypto Credential solution complies with financial regulatory policies, including the Travel Rule, and supports the “message exchange” specification. This involves collecting and transmitting specific information about the parties involved in the transaction to prevent money laundering, funding of terrorist activities, and other illegal activities.
Furthermore, the Mastercard Crypto Credential will expand its application scenarios, including NFTs (Non-Fungible Tokens), tickets, and other payment solutions. The expansion direction will depend on market demand and regulations.
Currently, the Mastercard Crypto Credential system has been implemented on three cryptocurrency exchanges: Bit2Me, Lirium, and Mercado Bitcoin, facilitating transactions between Latin America and Europe. Users from Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay will be able to use this system for cross-border and domestic transfers.
Walter Pimenta, Executive Vice President at Mastercard, stated that Mastercard continues to invest in technology, standards, and partnerships to promote secure, convenient, and reliable payment methods. With the growing interest in blockchain and digital assets in Latin America and globally, providing trusted and verifiable interactions on public blockchain networks is crucial.
Roberto Dagnoni, CEO of Mercado Bitcoin, a participant in Brazil’s Central Bank-authorized Central Bank Digital Currency (CBDC) testing program, believes that the Mastercard Crypto Credential system has the potential to accelerate the development of global financial transactions.
Sources:
Bitcoin Magazine, CoinTelegraph, Mastercard