Payments giant Mastercard announced an enhanced card program for cryptocurrency wallets and exchanges that aims to make it easier for partners to convert cryptocurrency to fiat currency.
The program is expected to reduce friction and improve customer experience as well as provide greater flexibility for consumers who want to spend their digital assets wherever Mastercard is accepted, the company said. The suite of program partners includes Circle, Paxos, Evolve Bank & Trust, Metropolitan Commercial Bank, Uphold, BitPay, Apto Payments, i2c Inc, and Galileo Financial Technologies.
When cryptocurrencies are spent today, they can only be settled on the Mastercard’s network using fiat currency like the US dollar, which meant that companies with their own card programs had to perform the currency conversion.
"Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier," said Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products at Mastercard.
The solution comes as a result of collaboration between Mastercard, Evolve Bank & Trust, and stablecoin issuers Paxos Trust Company, the issuer of Paxos Standard (PAX) US dollar-backed stablecoin, and Circle, the issuer of the second-largest (by market capitalization) stablecoin, USD Coin (USDC).
The pilot of the solution will use the USDC and PAX stablecoins to “facilitate crypto-to-fiat conversions” amongst card issuers to make it easier to settle payments to Mastercard.
"The collaboration between Circle and Mastercard demonstrates that dollar digital currencies like USDC play a foundational role in making payments more efficient and can facilitate new economic activity for businesses worldwide," Dante Disparte, Chief Strategy Officer at Circle, was quoted as saying.
The views expressed in this article are the author's own and do not necessarily reflect the view of News-crypto. News-crypto shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.
The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. News-crypto assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.
This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at firstname.lastname@example.org
If you would like to connect with us about any of the distributed content or other inquiries, please email us at email@example.com with the relevant documentation.