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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 larger 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 is designed to simplify transactions by exchanging metadata, eliminating the need for users to know the recipient’s supported assets and chains, thus increasing trust and security in each transaction.
Moreover, 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 for additional use cases in the future, such as Non-Fungible Tokens (NFTs), ticketing, and other payment solutions based on market demand and compliance standards.
For users, the process 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 specific digital asset and associated blockchain.
If the recipient’s wallet does not support the asset or blockchain, the sender is immediately notified, protecting all parties from potential loss of funds. The announcement further reads:
This milestone marks the first 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 aims to deliver safe, simple, and secure payments.
Partners, including Bit2Me, Foxbit, Lirium, and Mercado Bitcoin, have also expressed their commitment to innovation and the development of crypto solutions that drive alternative payment options and increase user experience.
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Initially, a select group of crypto wallet users will have access to Mastercard Crypto Credential on a first-come, first-serve basis. Over the following months, wider availability will be rolled out to more than 7 million users across the participating exchanges, “democratizing” access to “secure and efficient” crypto transactions.
Featured image from Shutterstock, chart from TradingView.com
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