Mastercard’s new Crypto Credential service is the latest thing in cryptocurrency that I am psyched about. This crypto-credential project by Mastercard is going to help with making it easier and more secure for people who are doing transaction using cryptocurrencies, something which I believe is a must-have for the crypto-world.
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One of the key aspects of this new service is that it allows users to send and receive cryptocurrency via easy-to-remember aliases rather than long and complex blockchain addresses. But until now, I had always been intimidated by blockchain addresses. They usually consist of a random mix of alphabets and numerals which can be easily confused or mistaken resulting in loss of your crypto forever. Now customers can make use easy names or identifiers when they do transactions that are more user-friendly as such created through this system thereby simplifying transactions.
Mastercard is rolling out this service initially in Latin America and Europe. I think this is a smart move, as these regions have been showing increasing interest in cryptocurrency. People in countries like Peru, Chile, Portugal, Argentina, and Spain will be able to use this new service, as well as those in many other countries across these two continents. This means a lot of people will soon find it much easier to make both domestic and international crypto transactions.
Another aspect of Mastercard Crypto Credential that excites me is its focus on security and verification. The service aims to ensure that all interactions on the blockchain are trusted and verified. This is crucial because, as the popularity of crypto grows, so do the number of scams and fraudulent activities. By using this service, users can have more confidence that their transactions are secure and that they are dealing with legitimate parties.
The system also exchanges metadata to verify which assets and blockchains the recipient supports, which eliminates a lot of the guesswork currently involved in crypto transactions. This means that when I send crypto to someone, I don't have to worry about whether their wallet can accept the type of cryptocurrency I'm sending. This feature alone can save a lot of headaches and prevent many errors.
Mastercard's new service also supports the exchange of Travel Rule information for cross-border transactions. This is a regulatory requirement designed to ensure transparency and prevent illegal activities. I think this is a great addition because it means that the service is not only user-friendly but also compliant with important regulations, which can help foster trust and adoption among users who may be hesitant to use crypto due to concerns about legality and security.
A crypto wallet company, Foxbit, has now joined the pilot scheme so even more people could use this new service. Furthermore, Lulubit users will now have access via its integration with Lirium. Therefore, it is a step forward in creating an industry that will make it easier and safer for everyone to transact using cryptos.
But what I see as being the most striking future expansions of Mastercard Crypto Credential is in peer-to-peer transactions. The initial focus will be on peer-to-peer transactions but there is a possibility of expanding into other areas such as NFTs, ticketing and a variety of payment methods. This means that MasterCard wants to think ahead and respond to market trends and regulatory standards.
