Mastercard Introduces Mastercard Crypto Credential for Secure and Efficient Peer-to-Peer Transactions
Payment giant Mastercard has announced the launch of its new solution, Mastercard Crypto Credential, 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 participating in transactions meet a series of verification standards set by Mastercard. In simple terms, the system verifies user identity based on a set of standards before they engage in blockchain transactions, ensuring compliance with security requirements.
Once verified, users receive an alias similar to an Ethereum domain name, which can be used on all platforms supporting Mastercard Crypto Credential to send and receive funds, eliminating the hassle of entering complex wallet addresses.
When users want to transfer cryptocurrency, such as Ethereum, the system checks the validity of the recipient’s alias and confirms if their wallet supports Ethereum and compatible blockchains.
If the recipient’s wallet is not supported, the system blocks the transaction and notifies the sender, preventing any loss of funds. This not only increases transaction transparency but also 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 also complies with the financial regulatory policy of the Travel Rule and supports its “message exchange” specification. This involves collecting and transmitting specific information about the parties involved in the transaction, aiming to prevent money laundering, funding of terrorist activities, and other illegal behaviors.
Furthermore, the Mastercard Crypto Credential will expand its application scenarios, including non-fungible tokens (NFTs), tickets, and other payment solutions. The direction of these expansions 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 of Mastercard, stated that Mastercard continues to invest in technology, regulations, and partnerships to promote secure, convenient, and reliable payment methods. As interest in blockchain and digital assets continues to grow in Latin America and globally, ensuring trusted and verifiable interactions on public blockchain networks is crucial.
Roberto Dagnoni, CEO of Mercado Bitcoin, one of the participants in Brazil’s Central Bank’s 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.
Source:
Bitcoin Magazine, CoinTelegraph, Mastercard