Mastercard launches program to help banks offer cryptocurrency transactions
Mastercard Launches Program to Help Banks Offer Cryptocurrency Transactions. A step forward to help traditional banks enter this nascent field.
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According to CNBC , Mastercard has just announced the launch of a program to help financial institutions open cryptocurrency exchanges. Specifically, Mastercard acts as a "bridge" between the Paxos crypto trading platform and banks and credit institutions.
Accordingly, Mastercard will support the legal and security part so that banks can more easily participate in the market. Legal and security are the two most important issues preventing traditional organizations from entering this emerging field.
In addition, Paxos is also the platform that PayPal chooses to cooperate with to provide similar services. It can be seen that Paxos is a prestigious name trusted by many big men.
Mastercard Chief Digital Officer Jorn Lambert shared: According to a survey conducted by the company, about 60% of respondents said that they would be willing to try cryptocurrency if their bank has a provide this service.
This shows that users are still open to crypto, but are hesitant because of security concerns. Especially in recent months, the field has continuously witnessed a series of hacks.
Mastercard is committed to banking on legal aspects, compliance with the latest cryptocurrency terms, transaction validation, and user verification support.
It is known that Mastercard will pilot this program in the first quarter of 2023 and expand in other countries.
When asked if he is worried about the current “crypto winter,” Jorn Lambert affirmed:
“It is short-sighted to assume that the crypto winter will bring the market to a halt. We don't see that.
In fact, as the regulatory framework becomes clearer, the trading platform has better security technology and we see the current problems will gradually be resolved in the near future.”
Previously, Mastercard cooperated with Coinbase, allowing customers to pay with Mastercard when buying NFT on Coinbase marketplace.
Meanwhile, Mastercard's rival Visa is no less competitive. FTX cooperates with Visa to launch crypto debit cards in more than 40 countries, supporting more than 70 coins.
It can be seen that although crypto was born with the purpose of competing with the traditional banking system and payment companies, as it has developed to the present time, cryptocurrencies and financial institutions are gradually shaking hands with each other to bring more advanced and optimal financial solutions to users.
Oct 17, 2022