Mastercard Inc (NYSE: MA) recently announced enhancing the card program specifically for cryptocurrency exchanges and wallets. The idea behind this is to make cryptocurrency conversion into conventional fiat currency much simpler for the partners. In addition, Mastercard shall test new capabilities for letting more crypto companies and banks offer card options. As a result, many people are willing to spend digital assets at places where Mastercard is easily acceptable.
Solving the challenge
Currency conversion had so far remained operationally challenging for the crypto providers who wanted to launch or swell their card programs in case of currency conversion. This is the significant step that precedes settlement on the network of Mastercard. Traditionally, when those wish to spend their digital asset of cryptocurrency, like Litecoin, Ether, Bitcoin Cash, and Bitcoin, the transaction needs to enter and settle on Mastercard’s network as the fiat currency. Mastercard is, however, discussing things with Circle, Paxos, and Evolve, among other sizeable digital asset communities. The idea behind the discussion is to overcome this challenge for crypto players in the industry.
Expanding the potential of digital payments and assets
Earlier in the year, Mastercard had announced that it was gearing up to enable some of the stablecoins directly on the Mastercard network. This would lead to expansion of payments and digital assets scope. Therefore, the declaration of enhancing the cryptocurrency exchange experience is seen as a crucial step for expanding the ecosystem. Additionally, this sets a stage for safe, secure, and compliant future scope of crypto payments.
It is essential to note that there aren’t many crypto companies with this foundational architecture and infrastructure that enable cryptocurrency conversion into conventional fiat currency, such as the U.S. Dollar. Mastercard’s executive VP for blockchain products & digital assets, Raj Dhamodharan, said that Mastercard is making it more straightforward through its engagement with the digital asset community so that people have more choice of payment across the world.