Mastercard has announced the launch of a peer-to-peer (P2P) platform for cryptocurrency users in Europe and Latin America. This initiative allows users on supported exchanges to send and receive cryptocurrencies using Mastercard Crypto Credential aliases, streamlining the transaction process.
Mastercard Crypto Credential Pilot
As announced on Wednesday, the platform extends its services to users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay, enabling them to conduct cross-border and domestic transfers across multiple currencies and blockchains.
This expansion is further boosted by including Foxbit, a crypto wallet provider, and Lulubit, through its integration with Lirium, into the Mastercard Crypto Credential pilot ecosystem, reportedly broadening its reach to a bigger consumer base.
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The Mastercard Crypto Credential acts as a verification mechanism for interactions between consumers and businesses on blockchain networks. It’s designed to simplify transactions by exchanging metadata, eliminating the necessity for users to know the recipient’s supported assets and chains, thus increasing trust and security in each transaction.
Furthermore, Mastercard Crypto Credential complies with regulatory requirements, including the Travel Rule, which promotes transparency and prevents illegal activities in cross-border transactions.
Notably, this framework paves the way in which for added use cases in the longer term, resembling Non-Fungible Tokens (NFTs), ticketing, and other payment solutions based on market demand and compliance standards.
For users, the method begins with verifying the user against Mastercard Crypto Credential standards and issuing an alias to conduct transactions across all supported exchanges.
When a transfer is initiated, the platform validates the recipient’s alias and verifies that the recipient’s wallet supports the particular digital asset and associated blockchain.
If the recipient’s wallet doesn’t support the asset or blockchain, the sender is instantly notified, protecting all parties from potential lack of funds. The announcement further reads:
This milestone marks the primary real-world application of the Mastercard Crypto Credential vision, which was unveiled at Consensus in 2023. The live Mastercard Crypto Credential P2P transactions represent the potential to further expand and support the domestic and cross-border remittance market.
Access To Secure Crypto Transactions?
Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean at Mastercard, expressed enthusiasm for the project, stating that the continued investment in technology, standards, and partnerships goals to deliver protected, easy, and secure payments.
Partners, including Bit2Me, Foxbit, Lirium, and Mercado Bitcoin, have also expressed their commitment to innovation and the event of crypto solutions that drive alternative payment options and increase user experience.
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Initially, a select group of crypto wallet users could have access to Mastercard Crypto Credential on a first-come, first-serve basis. Over the next months, wider availability might be rolled out to greater than 7 million users across the participating exchanges, “democratizing” access to “secure and efficient” crypto transactions.
The 1-D chart shows the overall crypto market cap’s valuation at $2.4 trillion. Source: TOTAL on TradingView.com
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