Nfts
Mastercard pilots crypto ID product with aim of simplifying digital asset transfers
Quick take:
- The product supports sending and receiving cross-border and domestic transfers in multiple currencies and blockchains.
- The company also revealed its latest partner, Foxbit, as the crypto wallet provider joined its pilot ecosystem Crypto Credential.
- Cryptographic credentials help verify blockchain transactions between users, eliminating the complexity created by long crypto wallet addresses.
Mastercard has tested the real-world application of its Crypto Credentials product, performing peer-to-peer transactions on select crypto exchanges.
Described as a set of common standards and infrastructure that will help verify interactions between consumers and businesses using blockchain networks. It provides assurance that the user has met a set of verification standards and confirms that the recipient’s wallet supports the transferred asset, the company said in a press release.
One of the few uninspiring aspects of cryptocurrency occurs when sending and receiving digital assets, with users having to copy the entire crypto address and provide network details and details of the transferred asset.
This creates complex processes that can be exploited by attackers. Earlier this month, a crypto user was operated for $69 million by address poisoning, a tactic that tricks victims into sending cryptocurrency to the wrong address by imitating the first and last six characters of the real address.
According to Mastercard, Mastercard Crypto Credential eliminates the complexity for the consumer to know which assets or chains are supported by the person they are looking to send funds to, bringing more trust and certainty to these transactions.
The product is already available on Bit2Me, Lirium and Mercado Bitcoin exchanges, while crypto wallet provider Foxbit is the latest to join the Crypto Credential pilot ecosystem.
Mastercard said the product would initially be available in Europe and Latin America, allowing users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, from Spain, Switzerland and Uruguay to send cross-border and national shipments. transfers between multiple currencies and blockchains.
Describing the importance of ensuring user security, Mastercard said the first thing it does is verify the user according to the Mastercard Crypto Credentials standards, after which they are allowed to choose an alias.
The product verifies that the recipient’s alias is authentic each time a user initiates a transaction, also confirming that the recipient’s wallet supports the digital asset and chain used.
If any of these conditions are not met, the sender is informed and the transaction does not take place.
Commenting on announcementWalter Pimenta, executive vice president of product and engineering for Latin America and the Caribbean at Mastercard, said in a statement: “As interest in blockchain and digital assets continues to grow in Latin America and around the world, it is essential to continue providing reliable services. and verifiable interactions on public blockchain networks.
The company said the Mastercard Crypto Credential product will initially be offered on a first-come, first-served basis to a select group of crypto wallet users, before rolling out to more than 7 million users on exchanges participants over the coming months.
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