Mastercard has launched its Mastercard Crypto Credential program, enabling the “test-first peer-to-peer (P2P) transactions” using pseudonyms instead of long, complex blockchain addresses. This new system aims to simplify cryptocurrency transactions for exchange users, providing a more user-friendly approach.
Mastercard crypto credentials verify interactions between consumers and businesses using blockchain networks, ensuring users meet specific verification criteria, set by Mastercard, and ensuring that the recipient's wallet supports the transferred assets.
JUST IN: Mastercard launches Crypto Credential "The first experimental peer-to-peer transactions"partners with Mercado Exchange #Bitcoin 👀 pic.twitter.com/Xt6nbqV5XA
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“Mastercard continues to invest in its technology, standards and partnerships to bring safe, simple and secure payments to the forefront,” said Walter Pimienta, Executive Vice President of Product and Engineering at Mastercard in Latin America and the Caribbean. “As interest in blockchain and digital assets continues to grow in Latin America and around the world, it is essential to continue providing trusted and verifiable interactions across public blockchain networks. We are excited to work with this dynamic group of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”
Direct transaction capabilities are initially enabled on Bit2Me, Lirium and Mercado Bitcoin exchanges, with the aim of facilitating transactions between the Latin American and European corridors. Users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland and Uruguay can now send local and cross-border transfers across multiple currencies and blockchain, according to advertisement.
The system also supports the exchange of travel rules information for cross-border transactions, a regulatory requirement to try to prevent illegal activities, Mastercard said. The P2P transaction is the first of many use cases Mastercard Crypto Credential aims to support, with potential applications expanding to NFTs, ticketing and other payment solutions depending on market and compliance requirements, the announcement said.
“Mercado Bitcoin is proud to partner with Mastercard on its pioneering crypto credential program,” said Mercado Bitcoin owner Roberto Dagnoni. “As a leader in Latin America in innovative blockchain solutions, such as real assets and Brazilian digital currency, we believe in Mastercard’s initiative and its potential to pave the way to a faster future for global financial transactions.”
A select group of cryptocurrency wallet users will benefit from Mastercard Crypto Credential on a first-come, first-served basis, and wider availability will become available over the coming months to more than 7 million users across participating exchanges, the credit card company said. .