Mastercard wants to help banks offer cryptocurrency trading

Can the cryptocurrency industry grow without financial institutions? For Mastercard, these are essential to attract the general public. As a result, the American firm has teamed up with Paxos to help banks democratize cryptocurrencies for their customers.

A new Mastercard initiative to democratize cryptocurrencies

Mastercard, the 2nd bank card network in the world, continues to launch initiatives to popularize cryptocurrencies among the public. The American company has just announced its Paxos collaboration, a brokerage platform focused on cryptocurrencies.

Together, the two companies will help and support companies by providing them with all the necessary tools in the field of regulation and security.

According to Mastercard, many people interested in cryptocurrencies have not yet taken the investment step. It is about the sector always seems to be correlated, in the collective imagination, with illegal activities and risky. According to Jorn Lambert, Chief Digital Officer at Mastercard:

β€œThe cryptocurrency industry is still scary for some people. […] There are many people who are interested and fascinated by cryptos, but they would feel more secure if these services were offered by their financial institutions. Β»

With the help of Mastercard and Paxos, financial institutions will be able to offer services related to cryptocurrencies while limiting their involvement in the sector.

πŸ‘‰ Read also – How to buy Bitcoin (BTC)?

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The competition in crypto is heating up

By offering its services to banks, Mastercard takes an ambivalent position in the Web3 ecosystem.

If financial institutions start offering brokerage and administration services related to cryptocurrencies, some exchanges risk losing market share. The platforms most accessible to beginners will be the first to suffer the consequences.

Furthermore, centralized corporate custody of cryptocurrencies goes against the Bitcoin ethos that favors disintermediation. But according to Jorn Lambert, opening banks to these new assets is the only way to popularize cryptocurrencies :

“It’s hard to believe that the crypto-asset industry will truly become mainstream without considering the financial industry as we know it.”

The competition is also fierce for Mastercard : Recently, the company Visa has partnered with banking giant JP Morgan to develop cross-border payments on blockchain.

Anyway, Bitcoin is still not unanimous among the institutions. Remember that James Dimon, CEO of JP Morgan, said a few days ago that cryptocurrencies were “decentralized Ponzi pyramids”.

πŸ‘‰ Also in the news – Mastercard expands its cryptocurrency expertise with a new tool

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Source: CNBC

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