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- August 19, 2021, 10:52
The crypto-to-card initiative is gradually taking over the world. A few weeks ago, Visa shared some exciting statistics: the company has witnessed billions of crypto dollars spent on its network in less than six months. Following this news, another payment giant, Mastercard, has announced the launch of the special card program for cryptocurrency wallets and exchanges. The program intends to simplify the process of converting cryptocurrency into fiat currency. That’s indeed a huge breakthrough, but what are the exact benefits you are about to get?
Insights
Some crypto companies don’t have enough resources to support an adequate infrastructure; thus, they are not able to provide their customers with a convenient conversion service. Today all financial operations are performed in fiat currency, e.g., the US dollar or Euro. Therefore, you can spend cryptocurrency only if your payment company has its own card program that allows converting crypto into another currency.
After analyzing the existing problem, industry giants had to decide whether they should step up and make the lives of their consumers easier, and, luckily, they did. This year, it has finally become possible on Mastercard’s network.
The Mastercard program was designed to reduce possible friction and overall improve customer experience. From now on, the company’s clients will have greater flexibility in terms of their digital assets management, and the service is promised to be available wherever Mastercard products are accepted.
The solution provided by Mastercard comes as a result of collaboration between the company and two major stablecoin issuers. At the present moment, the stablecoins used by the system are Paxos Standard (PAX) and USD Coin (USDC). Crypto-to-fiat conversions are expected to be successfully facilitated by these two stablecoins; there is, however, a strong chance that the list of available cryptocurrencies will be enlarged soon. The feature will become available to all card issuers that settle payments to Mastercard.
The program is supported by many influential Mastercard partners, including Evolve Bank & Trust and Paros Trust Company (the issuer of the most popular US dollar-backed stablecoin), who currently hold the leading positions in the sphere of blockchain technology. Other partners that are worth mentioning: Circle, Metropolitan Commercial Bank, Galileo Financial Technologies, Uphold, Apto Payments, BitPay, and i2c.
Takeaway
One can’t deny the fact that cryptocurrencies are now more popular than ever. People want to use cards to manage their crypto assets, thanks to Bitcoin’s recent fluctuations in value. Such a significant facility as a convenient conversion of crypto assets to traditional currencies will undoubtedly become a must-have feature for all payment systems in no time. Cryptocurrencies are mainly prized for being totally anonymous, and that’s what people need the most right now. Even industry giants have to adapt to the new reality.
The digital dollar currencies are promising enough to make everyone believe that the foundational collaboration between Circle and Mastercard is the beginning of the new economic era. The world of business is about to face the biggest change ever, as cryptocurrencies have already claimed their legality, thus broadening the horizons of possible and developing a new, more efficient payment system.
