Mastercard has introduced a new feature known as the Mastercard Crypto Credential, which allows crypto exchange users to send and receive cryptocurrency using easy-to-remember aliases or usernames, instead of the traditional long and complex blockchain addresses. This new system is aimed at simplifying blockchain transactions while enhancing security and verification standards.
The Rollout and Participating Exchanges
The Mastercard Crypto Credential is currently live on several exchanges including Bit2Me, Lirium, and Mercado Bitcoin. These platforms facilitate blockchain transactions across locations in Latin America and Europe. Additional crypto wallet providers like Foxbit and Lulubit have also joined the Mastercard Crypto Credential ecosystem, broadening the service’s accessibility.
Geographical Contributors and Functionality
Users in countries such as Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay can now perform cross-border and domestic transfers seamlessly across multiple currencies and blockchain networks. Allowing for even less complex and simplified crypto transactions.
Enhancing Transaction Security and Compliance
The Mastercard Crypto Credential ensures that all transactions meet a set of verification standards, confirming that the recipient’s wallet supports the specific digital asset being transferred. It also supports the exchange of Travel Rule information, a regulatory requirement for cross-border transactions, to maintain transparency and help prevent illicit activities.
Prospects and Applications
Looking ahead, the Mastercard Crypto Credential is set to expand its applications beyond peer-to-peer transactions. Potential uses include NFTs, ticketing, and other payment solutions, depending on market needs and compliance with regulatory requirements. This initiative is part of Mastercard’s effort to integrate more practicality and day to day usage into digital transactions.
With the launch of the Mastercard Crypto Credential, Mastercard is creating ease and security in the crypto transaction space. The new system not only simplifies the process of sending and receiving digital assets, but allows for an even simpler transition for those looking for alternatives to the current systems.
