mastercard will expand it cryptocurrency By seeking more partnerships with crypto firms, the company’s head of crypto and payment card programs blockchain That said, even as the sector comes under closer scrutiny from regulators and banks become wary.
Mastercard has already partnered with crypto exchanges including binance, Nexo and Gemini will introduce crypto-linked payment cards in some countries. The Binance Card allows users to make payments in traditional currencies, funded by their cryptocurrency holdings on the exchange.
“We have dozens of partners around the world offering crypto card programs and they continue to expand,” Raj Dhamodharan, master cardthe head of crypto and blockchain told Reuters on Thursday.
“Providing access to crypto in a secure manner is also part of our value proposition and we are continuing to do so.”
Banks have become wary of crypto customers following the collapse of several large crypto firms last year, including the bankruptcy of a major exchange. ftx, Meanwhile, US regulators are increasingly calling out the lack of compliance in the market.
In March, the US Commodity Futures Trading Commission sued Binance, accusing the world’s largest crypto exchange of operating what the regulator called an “illegal” exchange and a “sham” compliance program.
Binance CEO Changpeng Zhao said the complaint contained an “understated reading of the facts.”
Dhamodharan declined to comment on Binance specifically, but said that any card program “goes through due diligence” and is constantly monitored.
Some banks, including Santander and NatWest, limit the amount of money UK customers can transfer to cryptocurrency exchanges in order to protect consumers from scams and fraud.
rivals in november Visa Broke its global credit card agreement with FTX. American Express – which said in 2021 it would consider using crypto as a possible option for redeeming reward points – said in February that it planned to use crypto as part of its core payment and lending services in the near term. Didn’t see the place
When asked whether Mastercard is considering placing restrictions on the amount that can be transferred to crypto exchanges using its payment network, Dhamodharan said, “We are not here to pick winners. are not for what transactions should or should happen.” Does not happen.”
Users of Mastercard’s network undergo multiple compliance checks, he said, adding that the company has invested in crypto analytics technology.
Dhamodharan said Mastercard is “really quite bullish” about the underlying blockchain technology, which powers cryptocurrencies.
“We think more and more regulated money will come into it,” he said.
© Thomson Reuters 2023