Despite the cryptocurrency currently going through the bear market, one of the world’s largest payment-processing corporations, Mastercard took a venturesome approach by launching a program that allows financial institutions to offer cryptocurrency to their clients. Based on recent reports, Mastercard will act as a bridge between Paxos, a crypto trading platform which has been trusted and utilised by Paypal, and banks, to offer similar services. Both Mastercard and Paxos will handle regulatory compliance and security – two core reasons banks cite for avoiding the asset class. “As regulation comes in, there is going to be a higher degree of security available to the crypto platforms and we’ll see a lot of the current issues getting resolved in the quarters in the years to come.” – Jorn Lambert, Chief Digital Officer of Mastercard
NAH, THAT’S NOT THE CASE!
Regardless, the launching of the program by the world-trusted corporation still doesn’t stop the sceptics among the crypto consumers who have voiced out regarding the currency volatility other than it going on the downtrend this year.
Last January alone, the crypto industry reportedly suffered billions in hacks, combined with multiple high-profile bankruptcies. On the other hand, Jorn Lambert, Chief Digital Officer of Mastercard confidently believes that
despite everything, there will only be more activities down the road that could potentially lead to more transactions and fuel Mastercard’s core business.
He stated that data from polling showed demand for the asset. Despite that, roughly 60% of respondents stated that they would rather test the waters through their existing banks.
WEB3, A NEW VENTURE
As the digital world slowly moves towards Web3, Mastercard, as well as its top competitors like Visa, have been actively venturing into the crypto industry and such. Previously, Mastercard teamed up with Coinbase on NFTs and Bakkt to allow banks and merchants in its network to offer crypto-related services.
“It’s hard to believe that the crypto industry will truly go mainstream without embracing the financial industry as we know it.” – Jorn Lambert, Chief Digital Officer of Mastercard Lambert heavily believes that crypto is currently at the cusp of really going mainstream. However, he stated that it’s still crucial for banks and middlemen like Mastercard to team up with the incumbent players to get there.