Taking care of any security and regulatory compliance issues, MasterCard is preparing to aid banks in offering bitcoin and cryptocurrency trading.
As reported, Mastercard is expected to unveil plans for a program aimed at helping financial institutions trade bitcoins and cryptocurrencies.
— CoinRisk (@CoinRisk) October 17, 2022
As a means to “bridge” the gap between banks, Mastercard will work with Paxos and handle regulatory compliance and security – two of the main reasons why many institutions avoid bitcoin and other cryptocurrencies.
How Does Mastercard View This Development?
In the view of Jorn Lambert, the chief digital officer at Mastercard, “there are a lot of people interested in crypto and fascinated by it, but they would feel more secure if their financial institution provided those services.”
“Mastercard’s chief digital officer, Jorn Lambert pointed out that 60 percent of participants wanted to dive into crypto with existing banks as opposed to exchanges.”$QNThttps://t.co/fzVMVp1xOw https://t.co/AzteFNy7dP
— Just A Tech Guy (@JustATechGuy_) October 17, 2022
However, Lambert notes that the asset class remains in high demand despite a weak market. According to him, there is no clear indication that a little bit of a crypto winter signals its end.
In addition, a recent survey showed that 60% of respondents wished banks would educate them about bitcoin and other cryptocurrencies. However, some individuals still find it a little frightening, he said.
We are really excited & grateful for this opportunity & look forward to continuing in this exciting and innovative space. pic.twitter.com/nfIlaluUVE
— PayBolt (@PayBoltOfficial) October 13, 2022
As well as providing anti-money laundering and identity monitoring services as part of its crypto compliance guidelines, the payments provider said it could help banks comply with regulations.
Mastercard will “crank the handle” on expanding internationally as soon as the product is tested. There has yet to be a mention of which institutions have joined so far, according to Lambert.
According to Mastercard, banks would be kept within the law by adhering to crypto compliance regulations, confirming transactions, and maintaining anti-money laundering and identity monitoring services.