Mastercard has announced in a press release that it will enhance its card program to make it easier for partners to create crypto cards for their clients.
Don’t miss out on how smart money is playing the crypto game. Subscribe to our premium newsletter - Crypto Investor.
Mastercard is working with Evolve Bank & Trust, Paxos Trust Company and Circle to simplify cryptocurrency conversions using stablecoins. This process will allow more banks and companies to offer crypto cards going forward as the conversion to fiat will already be handled.
Current crypto card transactions must enter and settle on Mastercard's payment network as fiat currency. This means the individual companies that want to offer these cards must handle the conversion from crypto to fiat themselves. This presents a major challenge and roadblock to offering customers crypto credit cards.
Using stablecoins, Mastercard aims to remove this problem and handle the conversions with the help of its partners and stablecoin operators, Paxos and Circle.
Raj Dhamodharan, executive vice president of digital asset and blockchain products & partnerships at Mastercard, said that not all cryptocurrencies have the infrastructure to facilitate fiat conversions, making it harder to spend them with credit cards.
“Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier," said Dhamodharan.
"Through our engagement with Evolve, Paxos, Circle and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay.”
This story is developing.