For the first time, crypto exchange users will be able to send and receive crypto using their Mastercard Crypto Credential aliases, instead of the typically long and complex blockchain addresses.
Launched last year, in April, Mastercard Crypto Credential is a set of common standards and infrastructure that will help verify interactions among consumers and businesses using blockchain networks. Mastercard Crypto Credential aims to provide a foundation for financial institutions, governments, brands, and crypto players, ensuring that those interested in interacting across web3 environments are meeting defined standards for the types of activities they’d like to pursue.
Key details about the Mastercard Crypto Credential:
What It Does
The Mastercard Crypto Credential verifies interactions among consumers and businesses using blockchain networks. It ensures that users meet a set of verification standards and confirms that the recipient's wallet supports the transferred asset.By exchanging metadata, it eliminates the complexity of knowing which assets or chains are supported by the recipient, bringing more trust and certainty to transactions.
Live Transaction Capabilities
The live transaction capabilities are initially enabled on the Bit2Me, Lirium, and Mercado Bitcoin exchanges, allowing them to enable blockchain transactions simply and securely between Latin American and European corridors. These capabilities allow for simple and secure blockchain transactions between Latin American and European corridors.Users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay can now send cross-border and domestic transfers across multiple currencies and blockchains.
Travel Rule Support
The system also supports the exchange of Travel Rule information for cross-border transactions. The Travel Rule is a regulatory requirement aimed at ensuring transparency and preventing potentially illegal activities.The P2P transaction is just the beginning. Mastercard Crypto Credential aims to support various use cases, including NFTs, ticketing, and other payment solutions, depending on market and compliance requirements.
Foxbit is the latest crypto wallet provider to join the Mastercard Crypto Credential pilot ecosystem, extending the reach to more consumers. Lulubit users will also receive access through its integration with Lirium.
This milestone represents the first real-world application of the Mastercard Crypto Credential vision, which was unveiled at Consensus in 2023. It has the potential to further expand and support the domestic and cross-border remittance market.
The Mastercard Crypto Credential offers several advantages compared to other crypto payment solutions. Instead of using long and complex blockchain addresses, the Mastercard Crypto Credential allows users to send and receive digital assets using aliases. These aliases are more intuitive and user-friendly, making crypto transactions easier for average users.
When a user initiates a transfer, the program verifies that their alias is valid and that the recipient's network address supports the associated token and blockchain of the transaction. If the recipient's address doesn't support the sender's asset or network, the transaction simply does not proceed, preventing potential loss of funds due to user mistakes.
Additionally, aliases protect against address poisoning scams, where attackers trick wallet users into sending coins to a similar-looking address.
While the P2P transaction is the first use case, the Mastercard Crypto Credential aims to support various scenarios, including NFTs, ticketing, and other payment solutions, depending on market and compliance requirements.
In the next step, said Mastercard, a select group of crypto wallet users will leverage Mastercard Crypto Credential on a first-come, first-serve basis. Thereafter, within the coming months wider availability will roll out to more than 7 million users across the participating exchanges.
In a nutshell, the Mastercard Crypto Credential simplifies crypto transactions, enhances security, and contributes to the broader adoption of cryptocurrencies in the financial ecosystem.
Advertisements