Mastercard’s latest partnerships aim to simplify cryptocurrency conversions to fiat within its payment network. It’s a big step forward for the democratization of bitcoin (BTC) and our cryptocurrencies. The payments giant tells us more today.
Mastercard goes crypto-friendly?
With the goal of reducing friction and providing consumers with more choice, Mastercard announced earlier this week that it will enhance its card program for cryptocurrency wallets and exchanges. This will make it easier for its partners to convert cryptocurrencies into fiat currency.
To enable exposure to Bitcoin and cryptocurrencies for its users, the New York-based financial institution publicly announced new partnerships with Evolve Bank & Trust and Paxos Trust Company, the leading infrastructures on the blockchain and the most famous regulated stablecoin issuance platforms.
To help reduce the inherent volatility of cryptocurrencies and the complicated conversions associated with them, Mastercard will also leverage Circle’s stablecoin, the USDC, which is gaining popularity. The idea is to achieve instant conversions during transfers and payments.
The suite of partners also includes Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c and Galileo Financial Technologies.
According to the official release:
“Mastercard and its partners will test this new functionality to allow more banks to offer a card option to people looking to spend their digital assets anywhere Mastercard is accepted.”
The revised card program will help Mastercard leverage its payment network to not only eliminate friction between fiat and crypto, but also to offer more alternatives to cryptocurrency users.
Goal #1: Shadow VISA on Bitcoin
Mastercard’s decision to explore the use of its traditional payment infrastructure in the crypto space is perhaps no surprise to those familiar with VISA’s current trend of offering crypto debit cards. Indeed, the latter is running amok in crypto transactions by processing more than $1 billion in transactions in 2021.
As Coin Telegraph previously reported, VISA thus reportedly intends to distribute a Bitcoin debit card to Australian citizens, who will also be able to handle popular altcoins, such as ether (ETH), Ripple’s XRP and bitcoin cash (BCH).
“Working with Mastercard’s pilot project to turn digital assets into dollars for everyday spending will accelerate consumers’ use of crypto as a payment method.”
Stephen Pair, co-founder and CEO of BitPay
Scot Lenoir, president of Evolve, believes that settlement via Circle (USDC) could revolutionize cryptocurrencies. It is the next step in modernizing banking for everyone. JP Thieriot, Uphold’s CEO, also says that removing friction and barriers to entry is “critical” to ensuring broad adoption of 100% digital payments.
“Today, not all crypto companies have the basic infrastructure to convert cryptocurrency into traditional fiat currency. We are changing that.”
Raj Dhamodharan, Executive Vice President of Digital Assets, Blockchain Products and Partnerships at Mastercard
With these new partnerships, the payments giant aims to solve many accessibility issues, allowing more banks and crypto companies to offer a card to people wanting to spend their digital assets anywhere Mastercard is accepted. One imagines that it is also responding to the various announcements from PayPal and VISA who want their piece of the Bitcoin pie with 300 million invested in Blockchain Capital.
