Mastercard stablecoin is reported to be the USDC, which will be used by the cardholders, who are intended to make their payments in crypto tokens. A few months ago, Mastercard announced accepting crypto on its native network. The recent announcement of the USDC test is first among the upcoming Mastercard Stablecoin list.
The Pilot Announcement
On Tuesday, 20th July 2021, Circle’s Stablecoin called USDC is been announced to be used to mitigate the gap within the cryptocurrency stored in an individual’s digital wallet and the financial money spent on the merchants.
Though the process may seem a little tedious, as it involves the conversion of crypto to Stablecoin and then the fiat currency, it is much less complex than the direct conversion of crypto to dollars. The Executive Vice President of Mastercard concerning Blockchain Products and Digital Assets, Mr Raj Dhamodharan states, various cryptocurrencies lack the necessary foundational infrastructure to facilitate the smooth conversion of crypto into fiat currencies, hence the addition of Stablecoin for cardholders would make the process simpler.
The plan is been brought into action following the increase in scrutiny towards Stablecoin by lawmakers and regulators. On 19th July 2021, a promise was made by the US President’s Working Group for Financial Markets concerning the publishing of the recommendations made to Stablecoin regulations. These recommendations came after discussions among leading federal financial regulators concerning probable risks and use cases.
Companies Involved in Adoption
Mastercard observed this opportunity and made the announcement. Although, it’s not the only company in the race as Visa has also made an announcement lately, about the transactions with USDC. The pilot announcement made by Mastercard not just involves Circle, but there are other participants including Paxos Trust Co, Evolve Bank & Trust among others. Involvement has been made public, however, the roles are not explicitly discussed. Mastercard states that the business is planning to collaborate with Metropolitan Commercial Bank and Evolve bank to approve the issuance of crypto cards.
