MasterCard, the payment network giant, has launched a first-of-its-kind technology solution named Crypto Secure. It is designed to bring security and trust to the crypto and digital ecosystem. It aims to bring a new level of trust to crypto purchases across the global network of 2,400 exchanges[i]
The president of MasterCard’s Cyber and Intelligence, Ajay Bhalla said: “At Mastercard trust is our business and with cryptocurrency more intertwined in our daily lives this is an exciting next step in our journey. Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with MasterCard.”
How does it work?
Crypto Secure uses CipherTrace’s insights and technology in combination with propriety information to help card issuers stay compliant with the complex regulatory framework of the digital assets sector. CipherTrace is a Californian-based tech company that provides solutions to banks, crypto exchanges, wallets, crypto ATMs, and other Virtual Asset Service Providers (VASPs) to safely process crypto and digital asset transactions while reducing risk, protecting against fraud, and being compliant with regulations.
Crypto Secure gives each issuer the following advantage:
- provides each issuer with a color-coded dashboard that shows where their cardholders are buying cryptocurrency
- accurately identify the crypto exchanges
- measure transaction approvals and declines
- understand, at a portfolio level, their exposure to crypto risk through a single score
- access a benchmark rating for comparison to a peer group of financial institutions
Why It matters?
One of the biggest issues in the crypto space is fraud. This problem is putting off a lot of potential crypto customers. The traditional financial system is not 100% secure, but people still trust it more because of its proven track record.
While it seems like the project is designed for issuers (i.e. banks, and financial institutions), there will still be a trickle-down effect on the retail customers or cardholders. The additional security layer will surely give more confidence to would-be crypto users. MasterCard taking interest in crypto security is a big indication that it is recognizing the potential of cryptocurrencies. Despite being an established financial giant, it chose to acknowledge that it needs to adapt to the changing times.
https://investor.mastercard.com/investor-news/investor-news-details/2022/Mastercard-makes-it-easier-safer-to-buy-crypto/default.aspx
