SNEAK PEEK
- Mastercard aims to build trust in the blockchain ecosystem with Mastercard Crypto Credential.
- The move is a positive initiative to develop trust for consumers, governments and businesses.
- Mastercard has joined crypto wallet providers like Uphold and Bit2Me and public blockchain network firms like Polygon Labs and The Solana Foundation.
There’s been major innovations in both cryptocurrency and blockchain in recent years. Despite leading to scalable and strong systems, lack of appropriate defense has resulted in vulnerabilities in compliance and security. As a result, customers, governments and businesses lose interest.
Regulators have attempted to develop meaningful regulations; whereas, regulated financial institutions and central banks have formed different solutions on public chains. However, a way for compliant, trusted and valid interactions on public blockchain networks was required to implement such rules and establish scalable use cases.
To meet the purpose, Mastercard has created Mastercard Crypto Credential. It will develop a set of familiar standards and infrastructure to make way for trustworthy interactions among businesses and consumers.
At #Consensus23, we announced how we are instilling trust in the blockchain ecosystem through Mastercard Crypto Credential. With crypto wallet providers @Bit2Me_Global, @LiriumAG , @MercadoBitcoin and @UpholdInc and public blockchain network organizations @AptosLabs,… pic.twitter.com/P33mtDVAas
— Mastercard News (@MastercardNews) April 28, 2023
Mastercard Crypto Credential can unlock many use cases since business and consumer verification needs differ in accordance with market and compliance requirements.
For example, Mastercard Music Pass NFT was released as Mastercard Artist Accelerator’s extension and depends on different verification criteria than Immersve, which allows consumers to pay for usual goods and services upon using crypto from their Web3 wallet.
In other words, the level of authentication to receive an NFT is different from the level of authentication needed to shift digital assets from or get assets to crypto wallets.
Ensuring that people who are keen to interact across Web3 environments meet the set standards for their preferred activities is possible with Mastercard Crypto Credential. Other than defining authentication standards and levels, it will offer essential enabling technology for more and more use cases. This has been thought of in certain ways.
For instance, by offering easy-to-remember aliases that will help consumers to share wallet addresses with one another, curb errors and enhance the consumer experience.
Another way is to bring valuable details to blockchain transactions via metadata to define a wallet’s features and make sure that transactions are done as planned.
Moving on to another way, digging into the suite of services of CipherTrace to authenticate addresses as well as support Travel Rule compliance for cross border transactions.
Lithium, Uphold, Bit2Me and Mercado Bitcoin are working with Mastercard on a project to allow transfers between the U.S. and Latin America and the Caribbean corridors.
Public blockchain network organizations such as Polygon Labs, Aptos Labs, The Solana Foundation and Ava Labs are other partners who will support in bringing Mastercard Crypto Credential to the ecosystems of app developers. Efforts will be laid on improving verification in ticketing, NFTs, enterprise and various other payments solutions.
Mastercard has set up and scaled a trusted ecosystem in terms of commerce previously as well. The company is keen to invest its rich experience to improve trust and work with the wide industry and governments for more advancement.
