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Cryptocurrencies have undeniably caught the attention of century-old companies worldwide. Crypto-focused products have been launched for a long time. Now giants like Mastercard are moving to take this much further. It was once a dream to see Mastercard and crypto side by side, but now we learn that the giant company has launched its own crypto P2P network.
Mastercard and Crypto
During the bear markets, we saw Bloomberg news that Visa and Mastercard would suspend crypto-focused services and operations. This feels like just yesterday, but if we look at today, especially with the SEC approving a BTC ETF in the US, the crypto space has been officially legitimized. Today, hundreds of investment companies hold billions of dollars in BTC ETFs.
According to today’s announcement from Mastercard, the Mastercard Crypto Credential network, which is in the pilot phase, supports transactions for Lirium and Mercado exchanges. The launch of the P2P platform is the latest step in crypto-focused initiatives. The advantages of crypto in cross-border payments are now recognized worldwide.
Payment giants like Mastercard have focused on launching crypto-powered services because they see a better alternative in their field. This could be one of the right moves to keep them standing for decades to come.
Mastercard P2P Network
Walter Pimenta, Vice President of Products and Engineering for Mastercard Latin America and the Caribbean, says that not only in Latin America but all over the world, people are now showing intense interest in blockchain-based payment services.
“As interest in blockchain and digital assets continues to grow in Latin America and worldwide, it is crucial to continue offering reliable and verifiable interactions on public blockchain networks.”
According to data from the United Nations International Organization for Migration, migrants conducted $717 billion in remittance transactions in 2020. This figure increased by 16% in 2022, reaching $831 billion. When talking about these people, we should immediately think of the example of El Salvador. If you are sending money from one country to another and your homeland is a marginalized region like El Salvador, you pay a lot of transaction fees. One reason for the intense adoption of crypto in developing and underdeveloped economic regions is that it has removed borders at much lower costs.
With Mastercard Crypto Credential, the payment service giant is striving to take its share of this market.
