Global payments giant Mastercard just launched the first P2P pilot transaction of Mastercard Crypto Credential. This new service will allow users to send and receive crypto using aliases instead of blockchain addresses.
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The service is available in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. It supports cross-border and domestic transfers across multiple currencies and blockchains. This feature is live on Bit2Me, Lirium, and Mercado Bitcoin exchanges. These exchanges can now offer secure blockchain transactions between Latin American and European regions.
How Mastercard Crypto Credential Works
Mastercard Crypto Credential helps verify interactions on blockchain networks. It ensures that users meet a set of verification standards. This system also confirms that the recipient’s wallet supports the transferred asset. By exchanging metadata, Mastercard Crypto Credential makes it easier for users to know which assets or chains are supported by the person they want to send funds to. This brings more trust and certainty to these transactions.
Mastercard Crypto Credential also supports exchanging Travel Rule information for cross-border transactions. The Travel Rule is a regulatory requirement that ensures transparency and prevents illegal activities. This P2P transaction is the first of many possible use cases for Mastercard Crypto Credential. Depending on market and compliance needs, it may extend to NFTs, ticketing, and other payment solutions.
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The system works by first verifying a user under Mastercard Crypto Credential standards. The user then gets an alias to send and receive funds across all supported exchanges. When a user initiates a transfer, Mastercard Crypto Credential checks if the recipient’s alias is valid and if their wallet supports the digital asset and associated blockchain. If the receiving wallet doesn’t support the asset or blockchain, the sender is notified, and the transaction doesn’t go through. This protects everyone from losing funds.
Crypto Has Become Popular in LATAM
This is the first real-world application of Mastercard’s Crypto Credential vision. Unveiled at Consensus in 2023, this vision aims to make blockchain transactions safer and easier. Mastercard stated that it hopes to transform blockchain payments forever.
Interestingly, Mastercard’s initiative comes when interest in blockchain and crypto is growing rapidly in Latin America and worldwide. Regarding this, Walter Pimenta (executive vice president, Products and Engineering at Mastercard Latin America and the Caribbean) said,
“Mastercard continues to invest in its technology, standards, and partnerships to bring safe, simple, and secure payments to the forefront.”
Roberto Dagnoni, CEO of 2TM and Mercado Bitcoin’s owner, praised the partnership with Mastercard. “Mercado Bitcoin is proud to partner with Mastercard on its groundbreaking Crypto Credential pilot. As a Latin American leader in innovative blockchain solutions, such as real-world assets and the Brazilian CBDC, we believe in Mastercard’s initiative and its potential to pave the way for a faster future of global financial transactions.”
Cryptopolitan reporting by Jai Hamid
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