As the financial landscape continues to embrace cryptocurrencies, Mastercard is making a move to stay ahead of the curve. In a recent announcement, the global payments giant revealed plans to expand its crypto card program, allowing for more seamless integration of digital currencies into everyday transactions. The decision to expand Mastercard’s crypto card program comes as the company recognizes the growing demand for cryptocurrency-related products and services.
Mastercard Seeks More Partnerships To Expand Its Crypto-Card Plans
Mastercard, the multinational financial giant, is preparing to extend its cryptocurrency payment card program by actively pursuing collaborations with a greater number of crypto firms. The company’s Head of Crypto and Blockchain shared this development as digital currencies continue to garner attention from regulators and traditional banks become increasingly cautious.
In its mission to incorporate cryptocurrencies into the mainstream, Mastercard has already teamed up with leading crypto exchanges such as Binance, Nexo, and Gemini. These partnerships have allowed the company to offer crypto-linked payment cards in select countries. Cards linked to Binance, for example, enable users to make payments in fiat currencies using their cryptocurrency holdings on the exchange.
Raj Dhamodharan, Mastercard’s head of crypto and blockchain, said:
“We have dozens of partners around the world who offer crypto card programs and they continue to expand. Providing access to crypto in a safe way is also part of our value proposition, and we’re continuing to do that.”
Mastercard Ensures Complete Regulation Before Launching Crypto-Cards
As banks become increasingly cautious of cryptocurrency clients, the sector faces heightened scrutiny following the collapse of several major crypto firms last year, including the bankruptcy of the prominent exchange FTX. Meanwhile, U.S. regulators are intensifying their efforts to address the market’s perceived lack of compliance.
In March, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance, the world’s largest crypto exchange. The regulator accused Binance of operating an “illegal” exchange and a “sham” compliance program. Binance CEO Changpeng Zhao, however, responded to the complaint by asserting it presented an “incomplete recitation of facts.”
While not commenting on Binance specifically, Dhamodharan assured that any card program “goes through full due diligence” and is subject to ongoing monitoring.
Major banks, such as Santander and NatWest, have imposed limits on the funds UK customers can transfer to cryptocurrency exchanges as a protective measure against scams and fraud.
When questioned about the possibility of Mastercard imposing restrictions on the amount of money that could be transferred to crypto exchanges via its payment network, Dhamodharan responded,
“We’re not here to pick winners. We’re not here to pick which transaction should happen or shouldn’t happen.”
Dhamodharan emphasized that users of Mastercard’s network undergo numerous compliance checks and also mentioned that the company has invested in cutting-edge crypto analytics technology. Dhamodharan said,
“Mastercard is really quite enthusiastic about the underlying blockchain technology that powers cryptocurrencies. We think more and more regulated money will come to this.”
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Shayan Chowdhury
Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.
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Mastercard, the global payments leader, recently announced its plans to broaden the scope of its crypto card program. The program, developed in partnership with Wirex, allows customers to use their cryptocurrencies to purchase goods and services directly from merchants or withdraw cash from ATMs.
In an official statement, Mastercard revealed that it “intends to expand its cryptocurrency program by providing support to a greater range of digital assets”. This move could potentially open up the variety of digital assets that consumers can use to make payments through its network.
The company has been pioneering the way for many of the world’s top financial services companies in terms of embracing cryptocurrencies. They are ahead of many of their competitors in terms of offering their customers with cryptocurrency services, such as cryptocurrency purchases and asset trading.
Initially only available in Europe, the Mastercard crypto card program could expand to more countries in the near future. According to the statement, this would enable “Mastercard customers to use their card for everyday purchases with more merchants and points of sale for digital currencies [and] to access cash from more ATMs around the world.”
The company also designed its crypto program to enable its customers to “select what type of digital asset they want to transact with, giving them the ability to pick their preferred option or mix digital currencies if they choose.”
This move by Mastercard is another positive step in bringing cryptocurrencies into the mainstream. As the crypto market continues to grow, it is likely that more and more mainstream payment companies, such as Mastercard, will look to gain a foothold in the crypto world.
