Mastercard has initiated a pilot for its Crypto Credential network, allowing cross-border peer-to-peer digital asset transactions between Latin America and Europe.
Last year, Mastercard introduced the Crypto Credential, designed to verify interactions between consumers and businesses on blockchain networks. The pilot program will enable users from various countries on the Bit2Me, Lirium, and Mercado Bitcoin exchanges to conduct both cross-border and domestic transfers in multiple currencies and across different blockchains.
Participants will be able to send and receive cryptocurrency using simplified Mastercard Crypto Credential aliases, replacing the lengthy and complicated blockchain addresses typically used.
When processing payments, exchanges will first authenticate users based on Mastercard Crypto Credential standards. Once verified, users receive an alias that enables them to send and receive funds across all participating exchanges.
As a transfer is initiated, the Mastercard Crypto Credential system ensures the recipient’s alias is valid and that their wallet can accommodate the specific digital asset and blockchain involved. If the recipient’s wallet cannot support the transaction, the sender is promptly informed, thereby safeguarding all parties from potential losses.
Mastercard views this system as a significant advantage for the remittance market and plans to extend its capabilities beyond peer-to-peer transactions to include NFTs, ticketing, and various other payment options.
Walter Pimenta, EVP of Product and Engineering for Latin America and the Caribbean at Mastercard, stated: “As interest in blockchain and digital assets continues to surge in Latin America and around the world, it is essential to keep delivering trusted and verifiable interactions across public blockchain networks.”