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:
“The 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. »
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.
👉 Read also – How to buy Bitcoin (BTC)?
No. 1 exchange in the world – Regulated in France
10% off your fees with code SWULQ98B 🔥
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”.
👉 Also in the news – Mastercard expands its cryptocurrency expertise with a new tool
Join experts and a Premium community
Invest in your crypto knowledge for the next bull run
Receive a roundup of crypto news every Monday via email 👌
What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliate. This means that if you buy a product or register on a website from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investing in cryptocurrencies is risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damages or losses caused after the use of any product or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial means. This article does not constitute investment advice.