In a new foray into the world of cryptocurrencies, Mastercard announces a new crypto card dedicated to non-custodial wallets. This initiative is carried out through a partnership with the European firm, Mercuryo. The card is based on payments denominated in euros, as announced by the payment giant in its press release.
It is noted that with this step the firm intends to cover a larger number of users in the world of cryptocurrencies. In this sense, its management understands that beyond the exchanges there is a huge market of Cryptocurrency users and traders. The latter do not want to get involved in centralized platforms, especially after the experience of 2022.
Mastercard Crypto Card Promotes DeFi-CeFi Integration
The company’s efforts to promote the use of cryptocurrencies seem to be endless. Now, its approximately 100 million users around the world will have the opportunity to access this innovative card. It is also noted that its advantages lie in the security and guarantees that users themselves control their funds.
In simple terms, the card will allow users to keep their funds in their non-custodial wallets at all times. This means that there is no risk of the company freezing or blocking people’s funds. Thus, the card simply functions as an intermediary between people’s wallets and the merchant.
This comes with notable advantages and also some disadvantages. In the first case, the convenience of not going through a centralized trading platform to operate daily trading expenses is indispensable. Many users must exchange their tokens on exchanges to use services with some payment methods. With this initiative, as already mentioned, they do not need to move their funds.
Among the negative aspects of this crypto card announced by Mastercard are the high fees. Firstly, the card issuance fee is €1.6. Furthermore, transaction fees amount to €0.95 and the maintenance costs of the service are €1 euro per month.
🌍 Over 500M people now own crypto, and we’re set to double that! Why are people turning to on-chain?
From high-yield investments to tokenizing art and sending money abroad, crypto offers countless opportunities for financial independence often inaccessible in many countries.… pic.twitter.com/IjNuwsz4jM
— Mercuryo (@Mercuryo_io) September 5, 2024
The importance of self-custody
For a huge portion of cryptocurrency users, non-custodial wallets are of utmost importance. The latter gains strength with the distrust towards centralized exchanges. Storing cryptocurrencies on such platforms is highly risky, considering the lack of regulation in the sector and the mismanagement by most of these firms.
Therefore, the most recommended way to keep funds safe is through a non-custodial wallet. With these wallets, people hold the private keys to their coins, meaning that no one else has access to them.
It is worth noting that Mastercard’s exploration into this area of self-custody is not new. In August, the firm announced a pilot program with the largest wallet of this modality, MetaMask. Further back in May, the firm revealed a payment modality that allows transactions to be sent using aliases.
As you can see, the company is serious about this and users could be more motivated to get into this type of solution. With this, the path to unifying everyday commerce with cryptocurrencies is a little clearer.
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