Payment giant Mastercard announced the purchase of analytical company CipherTrace, which tracks more than 900 crypto assets in the market with the ability to scan blockchains for illegal transactions.
One of the largest payment systems is taking a closer look at the cryptocurrency industry, forcing some of the crypto community members to rejoice over the widespread adoption of a new asset class by institutional institutions, and others to panic that the purchase of firms responsible for blockchain security will allow large players to “crush” the entire market. Most of the dismayed worry that the purchase of CipherTrace will entail mandatory partnerships with global banks in the near future. And this, according to members of the crypto community, can harm the decentralization and anonymity of digital currencies.
Mastercard announced that it intends to implement CipherTrace services into its cryptocurrency security payment technology solutions. By combining the services of the payment giant with CipherTrace, it will be able to modify its own architecture of payments and the whole structure of the system, which is based on bank cards. This will allow Mastercard customers and partners to securely accept cryptocurrencies in compliance with all regulatory requirements.
According to the head of the cybersecurity department of Mastercard Ajay Bhalla, the extension rates of cryptocurrencies are forcing the development of methods that guarantee the reliability and security of financial transactions with them. He is convinced that the new asset class will help transform the economy, making it not only more effective, but also inclusive.
At the end of spring 2021, the company published a survey, as a result of which it came to the conclusion that 40% of customers are ready to use cryptocurrencies in 2022 as part of their payments.
Earlier, Mastercard announced it was participating in a Circle-managed USDC token pilot program, creating a bridge between buyers using USDC and sellers by allowing the latter to convert it into cash. In February 2021, representatives of the payment system announced that they intend to allow the acceptance of some digital currencies in their own net by the end of this year.