Mastercard has announced it is working on its card program in order to make it easier for crypto wallets and exchanges to convert crypto to fiat money. This new feature will be tested soon.
The company has partnered up with big names, such as Circle, Metropolitan Commercial Bank, Apto Payments, Evolve Bank & Trust, Uphold, BitPay, Galileo Financial Technologies, and i2c Inc. Mastercard is working with Circle, which operates the USDC, in order to run a pilot program for crypto to fiat conversion.
The two companies will test how feasible it is to use USDC as a means for card issuers (crypto wallets and exchanges) to make payments to Mastercard.
The CEO and co-founder of Circle, Jeremy Allaire, declared:
“The engagement between Circle and Mastercard reinforces how USDC is growing its role in payments and commerce on the internet while building a vital bridge between digital currency payment systems and large, established payment networks. We are thrilled to work with Mastercard to simplify card offerings for cryptocurrency companies.”
The pilot program means users will have to spend their crypto holdings, like Bitcoin, Ethereum, Litecoin, or Bitcoin Cash. They will have to enter and settle on Mastercard’s network as a fiat currency.
“Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier. Through our engagement with Evolve, Paxos, Circle, and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay,” declared Raj Dhamodharan, executive vice president of digital asset and blockchain products & partnerships at Mastercard.