The crypto industry is going through a particularly complicated year 2022. The complexity of the market and the bankruptcy of several companies in the sector have given crypto skeptics good reason to be more wary. Among them are banking institutions that fear money laundering and security issues. Mastercard, the American payment system company, wants to reassure them through its new program. It will collaborate with Paxos to allow banking institutions to offer bitcoin and other crypto trading.
Mastercard wants to democratize crypto trading with banks
Mastercard will give a boost to banking institutions to facilitate the support of bitcoin and cryptocurrencies. The American payment system giant has decided to partner with the blockchain infrastructure company Paxos to solve the difficulties that banks encounter during crypto exchanges. At the moment there is a huge gap between banks, which complicates crypto transactions. With Mastercard’s involvement, security management and regulatory compliance will be the focus.
By providing these two services, the problems put forward by banks to avoid digital currency transactions will be solved. If crypto becomes easily accessible from banks, even the most reluctant people would be tempted to take an interest in it. At least that’s what John Lambert, Mastercard’s current digital director. ” There are many consumers who are genuinely interested and intrigued by crypto, but would feel much more confident if these services were offered by their financial institutions. “, he specified.
In other words, the bear market current does not affect the demand for assets. Lambert is optimistic and thinks the bear market will not mark the extinction of the crypto industry. A recent survey highlights that 6 out of 10 people are in favor of using crypto through their banks. There is still the specter of uncertainty among individuals. Until this scare subsides, some investors will find it difficult to engage.
Conclusion
In sum, the goal will be to keep banks within the legality and scrupulous respect of crypto rules. HASInsi, Banks can implement a strict monitoring system to prevent money laundering. The program will begin in 2023, and the identity of the banks that will subscribe is not yet known.
Source : CNBC
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