Stellar Development Foundation is integrating Mastercard’s Crypto Credential solution into its blockchain network.
This credential, which helps verify interactions between consumers and businesses using blockchain networks, “enables a wide range of secure and compliant use cases for cryptocurrency wallet providers such as Coins.ph, Mercado, etc.” ” will be added to the Stellar ecosystem as a dedicated authentication solution. Regarding Bitcoin and Wirex, Stella said in a news release on Tuesday (October 15).
“Today, the user experience for cryptocurrency transfers remains complex, which can pose a barrier to adoption,” the release states.
“Mastercard Crypto Credential makes it easy to initiate cryptocurrency transfers using the recipient’s email address. Behind the scenes, Mastercard Crypto Credential ensures that the destination is valid and accepts the selected digital assets. to ensure compliance with regulatory requirements.”
Stella said the credentials confirm the interaction between the consumer and the business and provide some reassurance that the user has met the verification criteria. It also supports the exchange of information necessary for cross-border transactions, while adding trust and certainty to the process through the exchange of metadata.
The partnership will initially focus on enabling authentication of money transfers and peer-to-peer transfers, the release added. The companies will also explore how Mastercard’s services can be leveraged on the Stellar network, “opening the door to new and innovative applications of blockchain technology,” the release states.
PYMNTS examined some of the challenges of cryptocurrencies as a payment method earlier this year, noting that despite the proliferation of crypto assets, adoption remains limited.
“Bitcoin and other digital assets have progressed to acceptance by a growing number of sellers, but there are still significant hurdles to proving their usefulness and scalability. “It is the same volatility that has created a growing cohort of superhuman crypto billionaires,” the report states.
Additionally, the inherent volatility of cryptocurrencies makes these digital currencies less attractive as a stable medium of exchange. For businesses, accepting payments in highly volatile assets poses a risk to the balance sheet, as the value of the payment can fluctuate significantly between the time the trade is made and the time it is settled. .
“Regulatory uncertainty also continues to cloud the adoption of cryptocurrencies as a payment method,” the report said. “Governments and financial regulators around the world are still grappling with how to classify and regulate cryptocurrencies. This uncertainty has led to companies fearing potential legal and compliance risks. , are hesitant to adopt cryptocurrency payments.”
See more: authentication, blockchain, cross-border payments, cryptocurrencies, crypto payments, MasterCard, Mastercard Crypto Credential, news, peer-to-peer payments, PYMNTS news, money transfers, Stellar, Stellar Development Foundation, verification, updates
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