In a recent development, Mastercard, a leading credit card company, has broadened its Engage program to facilitate the use of cryptocurrency in the card industry. By connecting potential card issuers with partners possessing technical expertise, it aims to expedite the launch of crypto cards in the market. Furthermore, Mastercard Engage aids in crypto-to-fiat conversions and intends to create strategic alliances with companies issuing cards or operating as BIN (bank identification number) sponsors.
The timing of this initiative appears to be in sync with the increasing interest of traditional finance companies in the digital assets domain. It is also a part of Mastercard’s ongoing efforts to integrate cryptocurrencies into the financial system. In the previous month, the company released a crypto credentials program, employing technology from Mastercard-owned blockchain analytics firm CipherTrace, to conduct anti-money laundering (AML) checks for cross-border transactions.
Supporters of this move argue that the expansion of the Mastercard Engage network exhibits the company’s commitment to fostering growth within the digital asset ecosystem. Raj Dhamodharan, Executive Vice President for Blockchain and Digital Assets at Mastercard, affirms that the new program will empower players in the industry to scale their ambitions, backed by the safety and security of the Mastercard brand.
However, critics point out that venturing aggressively into the cryptocurrency space could potentially expose users to significant risks. Cryptocurrencies are known for their volatile nature and possible legal implications, which may inadvertently introduce a wave of issues for Mastercard customers.
Overcoming skepticism, Mastercard announced an extensive list of crypto payment companies joining the Engage program, including Baanx, Credencial Payments, Episode 6, Immersve, Monavate, Moorwand, PayCaddy, Paymentology, Pomelo, Swap, and Unlimit. As a result, this development is likely to widen the scope of digital assets, making them more accessible to a larger consumer base.
Overall, the move demonstrates Mastercard’s proactiveness in harnessing the potential of cryptocurrencies and adapting to the evolving landscape of the financial world. The expansion of the Engage program may serve as a catalyst for fostering growth, innovation, and collaboration in the digital asset ecosystem. On the other hand, the potential pitfalls and challenges brought by integrating cryptocurrency into mainstream finance demand careful consideration to mitigate the risks associated with this rapidly developing technology.
Source: Coindesk
