Webdesk: Mastercard’s head of crypto and blockchain said the company will seek more partnerships with crypto firms to expand its cryptocurrency payment card programme, even as regulators and banks become wary of the sector.
In some countries, Mastercard offers crypto-linked payment cards with Binance, Nexo, and Gemini. Binance cards let users spend their cryptocurrency holdings in fiat currencies.
“We have dozens of partners around the world who offer crypto card programmes and they continue to expand. ” Mastercard’s crypto and blockchain head Raj Dhamodharan told Reuters on Thursday.
“Providing crypto access in a safe way is also part of our value proposition and we’re continuing to do that.”
Moreover, several major crypto firms failed last year, including FTX, banks are wary of crypto clients. US regulators are cracking down on market noncompliance.
While, The US Commodity Futures Trading Commission sued Binance in March for running a “illegal” exchange and a “sham” compliance programme.
“Incomplete recitation of facts” was Binance CEO Changpeng Zhao’s complaint.
While, Dhamodharan declined to comment on Binance but said any card programme “goes through full due diligence” and is monitored.
To prevent fraud, Santander and NatWest limit the amount UK customers can transfer to cryptocurrency exchanges.
Moreover, Visa cut global credit card agreements with FTX in November. In February, American Express, which had said in 2021 it would consider using crypto to redeem reward points, said it did not see crypto replacing its main payment and lending services.
“We’re not here to pick winners,” Dhamodharan said when asked if Mastercard would limit money transfers to crypto exchanges via its payments network. We don’t choose transactions.”
Mastercard users undergo compliance checks, and the company has invested in crypto analytics technology.
Dhamodharan said Mastercard “really quite enthusiastic” about blockchain technology, which powers cryptocurrencies.
