Mastercard will soon introduce a scheme to assist banks to offer bitcoin and cryptocurrency trading, as per a recent report. Mastercard will collaborate with Paxos to “bridge” the gap between banks and will manage security and regulatory compliance, two major reasons cited by banks for shunning bitcoin and cryptocurrencies.
Mastercard’s chief digital officer, Jorn Lambert, stated,
Many consumers are interested in this and intrigued by cryptocurrencies, but they would feel much more confident if their financial institutions offering these services.
Lambert told CNBC that demand for the asset class remains high despite the downturn market. “It would be naive to believe that a little bit of crypto winter signals the end of it,” he said. “We do not see that happening.” In addition, 60% of respondents to a recent survey said they would like to invest in bitcoin and cryptocurrencies through their bank. “It is still rather frightening to some,” he remarked.
Mastercard stated that its mission is to “keep banks on the right side of regulation by adhering to crypto compliance regulations, authenticating transactions, and offering anti-money laundering and identity monitoring services.”
The chief digital officer of Mastercard commented, “It is difficult to assume that the crypto business will truly go mainstream without incorporating the traditional financial industry.”
Mastercard is scheduled to pilot this product in the first quarter of 2023, after which it will “turn the handle” to expand into further geographies. Lambert did not remark on which financial institutions have already joined the scheme.
Source: Phone World