Mastercard has launched a pilot program for its Crypto Credential network, enabling cross-border peer-to-peer digital asset transactions between Latin America and Europe.
Initially unveiled last year, the Mastercard Crypto Credential network aims to verify interactions among consumers and businesses using blockchain networks. This pilot program involves users from multiple countries transacting through the Bit2Me, Lirium, and Mercado Bitcoin exchanges, allowing both cross-border and domestic transfers across various currencies and blockchains.
The innovative system simplifies crypto transactions by allowing users to send and receive digital assets using their Mastercard Crypto Credential aliases instead of the typically long and complex blockchain addresses.
To ensure security, exchanges will verify users under Mastercard’s Crypto Credential standards. Once verified, users receive an alias to facilitate funds transfer across supported exchanges. When initiating a transfer, Mastercard Crypto Credential verifies the recipient’s alias and confirms that their wallet supports the digital asset and associated blockchain. If the receiving wallet does not support the asset or blockchain, the sender is notified, preventing the transaction and protecting all parties from potential loss of funds.
Mastercard anticipates that this system could significantly benefit the remittance market. The company also plans to extend its use beyond peer-to-peer transactions to include NFTs, ticketing, and other payment options.
Walter Pimenta, EVP of Product and Engineering for Latin America and the Caribbean at Mastercard, states, “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.”