Mastercard’s Head of Crypto Seeks More Partnerships Amid Growing Regulatory Scrutiny

Figures with Bitcoin flag, which goes on US dollars

Mastercard, one of the world’s leading payment providers, has announced plans to expand its crypto payment card program. According to a Reuters reportthe company’s head of crypto and blockchain, Raj Dhamodharan, revealed that Mastercard will seek more partnerships with cryptocurrency firms to increase its presence in the growing digital currency market.

Mastercard remains bullish on Crypto

The move comes at a time when the nascent sector is facing increased scrutiny from regulators, and banks are becoming more cautious in their dealings with digital currencies. Despite this, Mastercard seems to be confident in the potential of cryptocurrencies and seeks to capitalize on the growing demand for digital payment options.

Mastercard’s cryptocurrency payment card program allows users to spend their digital assets at merchants that accept Mastercard payments. The program currently supports over 30 digital currencies, including Bitcoin, Ethereum and Litecoin, and is available in over 40 countries.

Over the past few months, Mastercard has revealed that it has already partnered with several major exchanges, including Binance, Nexo and Gemini, to offer crypto-linked payment cards in certain countries. These partnerships have enabled users to make payments in traditional currencies funded by their cryptocurrency holdings on the exchanges.

Raj Dhamodharan, speaking to Reuters, stated that the company is committed to providing secure access to digital assets. He also mentioned that Mastercard has dozens of them partners around the world offering crypto card programs and they continue to expand.

The partnership between Mastercard and Binance, one of the world’s largest exchanges, has been particularly successful. The Binance Card, which allows users to spend their holdings in traditional currencies, has been well received by users and has helped drive the adoption of cryptocurrency payments.

Despite the success of these partnerships, Mastercard’s move into the market has not been without challenges. The company has faced increased examination since 2021 from regulators and traditional financial institutions, who have expressed concern about potential risks associated with cryptocurrencies.

In response, Mastercard has stated that it is committed to working with regulators and other stakeholders to address these concerns and ensure that its payment card program operates in a secure and compliant manner.

Mastercard doubles down on digital payment options

Mastercard has confirmed that it has no plans to place any restrictions on the amount of money that can be transferred to cryptocurrency exchanges using its payment network. Raj Dhamodharan has stated that Mastercard is not about “picking winners” and is instead committed to providing a secure and compliant platform for its users.

Further, Dhamodharan went on to explain to Reuters that users of Mastercard’s network are subject to multiple compliance checks, and the company has invested in cryptanalysis technology to help detect and prevent fraudulent activity.

Despite the regulatory scrutiny the nascent industry has faced in recent months, Mastercard remains “enthusiastic” about the underlying blockchain technology that powers them. Dhamodharan believes that more and more regulated money will flow into the market in the future, as the technology continues to develop and mature.

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