Mastercard Launches Crypto Credential To Boost Blockchain Trust

Apr. 30, 2023
Mastercard Launches Crypto Credential To Boost Blockchain Trust

teelaThe crypto and blockchain sectors have experienced remarkable advances in recent years, leading to more reliable and scalable systems. However, inadequate security measures have led to vulnerabilities, causing a decline in trust among consumers, businesses, and governments.

Regulators have been striving to establish effective regulations for the sector, while central banks and regulated financial institutions have explored various solutions for public chains.

We require a system that facilitates trusted, compliant, and verifiable interactions on public blockchain networks to implement these rules and develop scalable use cases.

Enter Mastercard Crypto Credential. This solution is designed to establish common standards and infrastructure. It promotes trusted interactions between consumers and businesses utilizing blockchain networks.

Mastercard Crypto Credential can unlock various use cases, catering to diverse consumer and business verification needs based on market and compliance requirements.

For instance, Mastercard has launched Music Pass NFT as part of the Artist Accelerator. This NFT necessitates different verification criteria. In comparison, their collaboration with Immersive enables customers to use crypto from their Web3 wallets for everyday purchases.

Essentially, the verification levels required for receiving an NFT and transferring digital assets to or from crypto wallets are vastly different.

Mastercard Crypto Credential’s Key Features

Mastercard Crypto Credential ensures compliance. It requires participants in Web3 environments to follow specified standards for their activities. The solution will define verification standards and levels while providing the necessary technology to facilitate more use cases.

The key aspects of Mastercard Crypto Credential include:

  1. Offering user-friendly, easy-to-remember aliases to enable consumers to share wallet addresses effortlessly, enhancing user experience and minimizing potential errors.
  2. Enriching blockchain transactions with metadata to define wallet attributes, ensuring that transactions are executed as intended (such as network type or supported assets).
  3. Utilizing CipherTrace’s suite of services, including CipherTrace Traveler, to verify addresses and facilitate Travel Rule compliance for cross-border transactions.

Collaborative Efforts And Future Plans

Mastercard is partnering with crypto wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold for an initial project enabling transfers between the US, Latin America, and Caribbean corridors.

Additionally, Aptos Labs, Ava Labs, Polygon Labs, and The Solana Foundation are collaborating to introduce Mastercard Crypto Credential. They aim to improve verification in NFTs, ticketing, enterprise, and payment solutions.

Mastercard is no stranger to establishing and scaling trusted ecosystems for commerce. The company has pioneered payments, setting the standard in identity verification and global protocols.

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With Mastercard Crypto Credential, they seek to leverage their vast experience. They collaborate with the broader industry and governments to bolster trust within the blockchain space. This collaboration aims to foster further innovation.

Kashif is a crypto-journalist with over 4 years of experience in the Cryptoverse. He began his career as a software engineer, but his curiosity towards decentralized technology lured him into the labyrinth of crypto, where he discovered a passion for reporting the latest news and developments in the field.