Mastercard launches pilot transaction of “encrypted certificates” to enable blockchain-based remittances between Latin America and Europe

Mastercard launches pilot transaction of "encrypted certificates" to enable blockchain-based remittances between Latin America and Europe

Mastercard launches pilot transaction of "encrypted certificates" to enable blockchain-based remittances between Latin America and Europe

Payment giant Mastercard announced on Wednesday (29th) that its “Mastercard Crypto Credential” has been launched in the first peer-to-peer pilot transaction. This network supports real-time transactions on Bit2Me, Lirium, and Mercado Bitcoin exchanges, enabling cross-border payments between the Atlantic coast.
The launch of this peer-to-peer (P2P) trading platform is part of the payment company’s efforts to promote cross-border payments using digital assets. Mastercard stated that users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay will be able to perform cross-border and domestic transfers across multiple currencies and blockchains.
Mastercard Crypto Credential Operation Demonstration
Walter Pimenta, Executive Vice President of Product and Engineering for Mastercard Latin America and the Caribbean, said in a statement:
Crypto Credential Alias
The Mastercard Crypto Credential will also allow users of cryptocurrency exchanges to send and receive cryptocurrencies through their Crypto Credential aliases, instead of using lengthy and complex blockchain addresses. This alias is a personalized address, similar to the vanity address provided by Ethereum Name Service (ENS) on the Ethereum network.
According to the press release, the exchanges adopting this platform will first verify users based on the Mastercard Crypto Credential standard. At this point, users will receive an alias to send and receive funds across all supported exchanges. When a user initiates a transfer, the Mastercard Crypto Credential will verify the validity of the recipient’s alias and whether the recipient’s wallet supports the digital assets and related blockchain to be sent.
Mastercard stated that this wallet labeling feature will facilitate cross-border payments, helping Mastercard gain market share in the rapidly growing remittance service field, which is the core of the company’s promotion of cryptocurrencies. According to data cited by the International Organization for Migration, the total amount of global remittances is expected to reach $831 billion in 2022, an increase of about 16% compared to $717 billion in 2020.
Mastercard stated that peer-to-peer transactions are the first among many possible application scenarios supported by its Crypto Credential system, and it may also expand to NFTs, ticketing, and other payment solutions, depending on the market and compliance requirements.
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