In the press release sent to CNBC, MasterCard representatives talked about the new application Crypto Secure that will be used to ensure that users of the payment system are not falling for a scam when dealing with crypto exchanges. MasterCard uses artificial intelligence algorithms to gather and process publicly available information from blockchain networks. The software assesses risks associated with dealing with any unknown entities offering crypto services.
The new foray for MasterCard
It seems that the company feels pressure from its clients to expand in the crypto industry more. When the world is done with adopting cryptocurrencies, systems like VISA, MasterCard, UnionPay, and many others will lose their relevance. Those who want to survive have to make preparations now and, at the very least, implement features that would allow them to stay competitive in a new reality where financial transactions are done on the blockchain.
The new piece of software released by MasterCard is certainly a big move. The network makes a statement that it sees potential in crypto and wants to provide its users with efficient tools to further legitimize the usage of digital assets. MasterCard purchased CipherTrade, a company focused on dealing with security on the blockchain.
The new system provides banks issuing cards with information about potentially dangerous entities with which users should not interact. In the end, banks make decisions whether to conduct business with them, but they have the information necessary to make the right call. With insufficient regulations in the crypto sector, having companies that introduce such useful features is a great thing that indicates a new direction for the whole industry.
MasterCard is competing against other operators
VISA is also looking into ways to integrate cryptocurrencies in its system. There are many signs that the future is behind crypto adoption with more and more countries using digital currencies. For example, people living in Sub-Saharan Africa are often unbanked and need cryptocurrencies for day-to-day expenses.
MasterCard is just another huge operator that sees where the wind is blowing. Their efforts will only expand in the nearest future.