Payment giant Mastercard is further entering the field of encryption with the goal of developing its core business model. CNBC said the company will launch a project to provide crypto services to banks and financial institutions.
This plan is one of a series of measures taken by payment companies to combine encryption with their business model. Mastercard allows millions of people and merchants to use digital assets on their payment tracks by swapping cryptocurrencies for fiat currencies and vice versa. Their latest plan will take a similar approach.
BTC price is sideways on the 4-hour chart.
Mastercard hopes that people will overcome their fear of encryption
It is reported that Mastercard will launch a pilot program in , , , in , . The plan will be available to selected banking institutions, so that they can conduct crypto transactions.
The program will expand to other regions and institutions in the coming years. Mastercard will operate as a "bridge" with Paxos, a trading platform that has already provided similar services to companies such as PayPal.
At the end of 2020, PayPal and Paxos announced a partnership that allows American people to use Bitcoin and other cryptocurrencies. Partners act as a bridge between digital assets and investors and deal with custody, compliance and security issues. The transactions of
Paxos and Mastercard follow similar terms. Chief Digital Officer of Mastercard Credit Card Jorn Lambert said that the demand for crypto products is very high. Their plans will try to eliminate friction in the process of contacting these assets.
Mastercard has conducted surveys and other research around the sentiment of cryptocurrencies and concluded that most people still want to obtain these assets. Research shows that most people prefer to obtain investment opportunities through local banks and other financial institutions.
So MasterCard decided to meet this demand with its new initiatives. Lambert said:
There are many consumers who are very interested in this, but if these services are provided by their financial institutions, they will increase their trust. After all, some people are still worried about this.
cryptocurrency must cross this door to enter mainstream
Mastercard will work to make its customers and institutional partners comply with U.S. law on encryption. In addition, the company will process and verify transactions and provide a framework for anti-money laundering (AML) and understanding customer (KYC) policies.
Mastercard executives believe that the current downward pressure on emerging asset classes will not limit their long-term growth. Payment companies expect transaction volumes in the digital asset class to surge in the coming years. Lambert added:
If you think a small encrypted winter will end, it would be too short-sighted. As regulations continue to improve, the security of encryption platforms will also become higher and higher, and we will see many current problems being resolved in the next few years.
