Money transfers between countries are costly for customers of the financial system and also bulky. This and other points are what the blockchain technology can be fixed in the short term. In this scenario, Mastercard presented Crypto Credential, a solution that will be available in all countries of the region and which will serve as a foundation for financial institutions, governments, brands and crypto players.
“Latin America remains the region where we see investment stronger in digital assets”said Walter Pimenta, executive vice president of products and engineering for Mastercard in Latin America and the Caribbean, who noted that “even during what we call the cryptocurrency winter, we continue to see many investments in the digital assets segment”.
in dialogue with clarion, Pimenta explained that this investment is made by the so-called “crypto enthusiasts”, people who bet on technology from the very beginning and see in it the shape that the financial system will take in the not so distant future; as “traditional” financial institutions and those he himself defined as “consumers”: “they are people or companies” who invest heavily in digital assets, mainly in stable coinsas a way to protect your finances from inflation.
The executive stressed that this type of digital asset user has grown fastest in recent years and not only in Argentina, where due to the weakness of the currency and the persistent increase in exchange controls, savers They look for other kinds of alternatives. “Before, everyone paid with checks,” Pimenta said to exemplify the evolution of the use of money, the digitization of which allows the diffusion of crypto technology.
With this platform, users from different countries will be able to do it create your own “crypto alias” and send money to each other, the so-called fiat or other digital assets, between countries. “It’s a fantastic, super interesting use case where encryption plays a key role because it simplifies the process in the sense that it can be faster and cheaper than the solutions we see today,” the executive said.
The solution presented by Mastercard will be available to different partners in different countries, such as the Argentinian fintech Lirium, which took care of the custody of the crypto assets it sold to them, almost fleetingly for a subsequent ban by the Central Bank, Banco Galicia exactly one year ago.
In recent days, the regulatory body has come out to plant a flag again on the proliferation of cryptographic solutions and has decided limit the offer which is composed of these digital assets from virtual wallets operating in the country. When asked about Argentina’s regulatory position, Pimenta said, “Regulation is a must. We operate with any of our solutions and the solution is 100% compliant with the country’s workplace.”
To that effect, he said, “Obviously, you have to figure out how actually bring the solution to Argentina. But here, I think everything we’re bringing can also support the regulator, as it puts before their eyes a solution that can actually provide much more security for this type of transaction.”
Source: Clarin
