Cryptocurrency is taking the world by storm, especially since many innovations now allow people to pay without having physical money on their person. It is still undeniable that cryptocurrency still has a lot of risks, especially since it runs on blockchains that are basically untraceable and not reliant on the government.
It could be good news for people who hold digital assets now that Mastercard wants to make cryptocurrency transactions more secure. Introducing the Crypto Secure Service, which uses an AI from CipherTrace.
CipherTrace is a blockchain security firm that Mastercard acquired back in 2021. The service will be in charge of looking into digital asset providers by creating risk profiles, according to Engadget. This helps users determine whether the transaction is secure or not and might even block purchases automatically if the merchant is deemed fraudulent.
Four Key Items that Mastercard is Looking For
The financial services company will be implementing strict consumer protection. This will include the safeguarding of the consumer's privacy and the security of their information. It has been stated on Mastercard's official website that consumers will receive excellent security as they expect from their cards. +
Mastercard will also execute strict compliance protocols, including Know Your Customer. This requirement is meant to detect illegal activity and deception in payment networks. It is what the financial services industry uses to verify the customer's identity and legitimacy.
Even if the blockchain in which cryptocurrency operates is technically not under government regulations, Mastercard is. This means that the users must abide by the local laws and regulations in their region.
The fourth key item is that digital assets must be accepted as a form of payment and not an investment, which has been big in the cryptocurrency world. Although investment opportunities with the additional security from a financial service company could be used to attract more consumers, Mastercard is set on using its services for fixed exchanges or goods, services, and payments.
Why Is Mastercard Considering Cryptocurrency Services In its Network?
With Mastercard's services, consumers and merchants will now have an additional payment method to explore. This can be especially enticing for people who already have digital assets to use for purchasing.
Not to mention, with its blockchain security feature, digital asset holders may prefer using Mastercard as a way to spot fraudulent parties in a way that an antivirus spots and blocks malware.
It is important to know that Mastercard does not support all types of cryptocurrencies in its network. The company has certain requirements and compliance measures that the currencies need to meet in order to be included in the service.
Which Cryptocurrencies are Supported in Mastercard's Services?
Upon the launch of the company's cryptocurrency card, it will be supporting 14 cryptocurrencies. This will include the US dollar-pegged stablecoin tether, Ethereum, bitcoin, BNB, Cardano, Solana, XRP, and others, which follows Mastercard's deal with Binance.
