Mastercard, one of the world’s leading payment providers, has announced its plans to expand its crypto payment card program. According to a Reuters report, the company’s head of crypto and blockchain, Raj Dhamodharan, revealed that Mastercard will be seeking more partnerships with cryptocurrency firms to increase its presence in the growing digital currency market.
Mastercard Remains Bullish on Crypto
The move comes at a time when the nascent sector is facing increased scrutiny from regulators, and banks are becoming more cautious in their dealings with digital currencies. Despite this, Mastercard appears to be confident in the potential of cryptocurrencies and is seeking to capitalize on the growing demand for digital payment options.
Mastercard’s cryptocurrency payment card program allows users to spend their digital assets at merchants that accept Mastercard payments. The program currently supports over 30 digital currencies, including Bitcoin, Ethereum, and Litecoin, and is available in over 40 countries.
In the past months, Mastercard has revealed that it has already partnered with several major exchanges, including Binance, Nexo, and Gemini, to offer crypto-linked payment cards in certain countries. These partnerships have enabled users to make payments in traditional currencies funded by their cryptocurrency holdings on the exchanges.
Raj Dhamodharan, spoke to Reuters stating that the company is committed to providing safe access to digital assets. He also mentioned that Mastercard has dozens of partners around the world that offer crypto card programs, and they are continuing to expand.
The partnership between Mastercard and Binance, one of the world’s largest exchanges, has been particularly successful. The Binance card, which allows users to spend their holdings in traditional currencies, has been well received by users and has helped to drive the adoption of cryptocurrency payments.
Despite the success of these partnerships, Mastercard’s move into the market has not been without its challenges. The company has faced increased scrutiny since 2021 from regulators and traditional financial institutions, who have expressed concerns about the potential risks associated with cryptocurrencies.
In response, Mastercard has stated that it is committed to working with regulators and other stakeholders to address these concerns and ensure that its payment card program operates in a safe and compliant manner.
Mastercard Doubles Down On Digital Payment Options
Mastercard has confirmed that it has no plans to impose any restrictions on the amount of money that can be transferred to cryptocurrency exchanges using its payment network. Raj Dhamodharan has stated that Mastercard is not in the business of “picking winners” and is instead committed to providing a safe and compliant platform for its users.
Furthermore, Dhamodharan went on to explain to Reuters that users of Mastercard’s network are subject to several compliance checks, and the company has invested in crypto analytics technology to help detect and prevent any fraudulent activity.
Despite the regulatory scrutiny that the nascent industry has faced in recent months, Mastercard remains “enthusiastic” about the underlying blockchain technology that powers them. Dhamodharan believes that more and more regulated money will flow into the market in the future, as the technology continues to evolve and mature.
Featured image from iStock, chart from TradingView.com
