Mastercard to simplify the conversion from crypto to Fiat currency

Evolve Bank & Trust, Paxos Trust Company and Circle among Mastercard partners in latest crypto campaign The efforts come after rival Visa reported that consumers spent $ 1 billion on cryptocurrency through cards linked to the Visa crypto in the first half of 2021.

Mastercard seeks to make it easier for its partners to convert cryptocurrency to traditional fiat currency, allowing them to offer a card option for people who want to spend their digital assets wherever Mastercard is accepted.

A study released by Mastercard in May found that 93% of people in 18 global markets said they would consider using at least one emerging payment method – such as cryptocurrency, biometrics, contactless, or QR code – over the next year. Overall, 40% of those polled said they plan to use cryptocurrency next year, the report adds.

But when consumers spend cryptocurrency, it must enter and settle into Mastercard’s network as traditional fiat currency, such as the U.S. dollar, the company said in a press release.

“Today, not all crypto companies have the basic infrastructure to convert cryptocurrency into traditional fiat currency, and we are making it easy,” said Raj Dhamodharan, executive vice president of digital assets and of Mastercard’s blockchain products and partnerships, in a statement. “… Mastercard expects to deliver on its promise of consumer choice by providing options for people around the world on how and when to pay. “

The global payments company is in talks with Evolve Bank & Trust and Metropolitan Commercial Bank to issue cards, as well as Uphold and BitPay to provide real-time crypto wallet technology, Mastercard announced Tuesday. It also works with i2c Inc., Apto Payments and Galileo Financial Technologies to support program processing and management.

In addition, Paxos Trust Company, a blockchain infrastructure and regulated stablecoin issuance platform, and Circle, the main operator of USD Coin (USDC), will use their platforms to facilitate the conversion of the currency. crypto to fiat via fiat-backed stablecoins.

Despite the increased adoption of digital currency over the past year, most people are reluctant to spend it due to its volatile nature and the frictions associated with sending remittances, said Matthew Gould, founder and CEO of Unstoppable Domains, which offers decentralized websites and blockchain. domain names based. Innovations from companies like Mastercard are changing that, he added.

“This decision signals major progress towards simplifying crypto transactions for businesses and consumers,” Gould told Blockworks. “Dollar-linked stablecoins like USDC are the future of crypto payments, and it’s exciting to see financial institutions like Mastercard adapt to a world beyond fiat.”

Mastercard’s efforts come after rival Visa revealed earlier this month that it is partnering with 50 crypto platforms on card programs that allow users to convert and spend digital currency at 70 million. tradespeople. Visa reported that consumers spent more than $ 1 billion in cryptocurrency on goods and services through Visa’s crypto-linked cards during the first half of 2021.

Mastercard had shared plans in February to allow its merchants to receive and settle transactions with digital assets by the end of the year. Gemini announced in April that Mastercard would serve as the exclusive card network for its bitcoin-back credit card.

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