Mastercard began pilot testing a program for crypto P2P transactions using a new user identification system. This initiative aims to simplify cryptocurrency operations and reduce the likelihood of user errors by implementing aliases for transactions.
Financial giant Mastercard announced the launch of a pilot program testing crypto P2P transactions using Mastercard Crypto Credential, a new alias-based data identification system.
Users will be able to use aliases instead of the long crypto addresses typically required for blockchain transactions to receive or send digital assets. These aliases will be assigned to and verified by the company.
Crypto exchanges Bit2Me, Lirium, and Mercado, as well as wallet provider FoxBit, will participate directly in the project. During the experiments, users from Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay will be able to make cross-border transfers and domestic payments in various cryptocurrencies and across different blockchains.
Walter Pimenta, Executive Vice President of Product and Engineering at Mastercard for Latin America and the Caribbean, stated that the initiative aims to test a system and technology that will provide users with a safe, simple, and reliable way to make cryptocurrency payments.
Leif Ferreira, CEO and Co-Founder of Bit2Me, emphasized that Mastercard’s new identification data system will reduce financial losses caused by errors when entering addresses or sending assets incompatible with the recipient’s address.
The simplification of crypto transactions often faces criticism from the community. Mastercard’s initiative is criticized for potential centralization since all Mastercard Crypto Credential data will be stored on the payment giant’s servers. Mastercard was repeatedly the target of significant data breaches. Additional checks and the storage of client data also raise concerns among users worried about the privacy of their personal information.
Recently, Mastercard launched Start Path Blockchain & Digital Asset, an acceleration program for cryptocurrency startups.
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