As the world embraces the transformative power of blockchain and cryptocurrency, Mastercard has acknowledged their potential to add significant value to the financial industry. However, the company’s EVP and head of crypto and blockchain, Raj Dhamodharan, points out that tackling security and ease of use issues is crucial in building trust.
During a recent North America Innovation Day event, Dhamodharan highlighted the increasing global popularity of blockchain and cryptocurrency technologies. Nonetheless, he argued that the lack of security and complex user interactions limit these technologies’ use cases and utilities. It is essential to make safety and simplicity priorities to fully utilize their ability to store and move capital and value.
In addition to security and ease of use, building a foundation of trust in the blockchain ecosystem is crucial for realizing its true potential, according to TechCrunch. Johan Gerber, EVP of Security and Cyber Innovation, echoed this sentiment by emphasizing the need for interoperability and underlying security of trust to scale the technology globally.
With trust, security, and ease of use in place, Dhamodharan believes it will become much more accessible for traditional and new players to engage with the Web3 industry. Although capital and talent are flowing into the sector, he insists that there is still untapped potential, stressing that the technology of blockchain and crypto can be incredibly useful for the financial industries beyond mere investment.
Mastercard has been actively involved in the blockchain and crypto space, launching various initiatives and announcing significant developments. The company introduced Crypto Secure software in October last year, powered by CipherTrace, to help banks detect and block transactions from fraud-prone crypto exchanges. At the same time, Dhamodharan stated that seamless spending of cryptocurrencies like Bitcoin would become possible in the near future through developments in areas such as crypto cards, service providers, and easier crypto-to-fiat conversion for payments.
The launch of Start Path Crypto in November was a further step forward for Mastercard, aimed at helping blockchain, crypto, and digital asset startups scale. CEO Michael Miebach also expressed his belief that Bitcoin could one day become a mainstream payment method.
Mastercard’s commitment to the blockchain and crypto community is evident through various initiatives, supporting platforms ranging from non-fungible token (NFT) marketplaces to metaverse gaming titles and Web3 infrastructure providers. The company’s proactive approach showcases its understanding of the benefits these technologies can provide to the financial industries if they can successfully address and overcome the challenges of trust, security, and ease of use.