Mastercard’s Chief Says Blockchain Can Bring Much More Value to Financial Services

Blockchain News: Mastercard, a leading payment giant, recognizes the potential value of crypto and blockchain technologies in the financial industry. However, they emphasize that addressing security and usability issues is crucial to building trust and fully realizing their benefits.

During a North America Innovation Day event, Raj Dhamodharan, Mastercard’s EVP and head of crypto and blockchain, highlighted the increasing global popularity of blockchain and crypto. Nevertheless, he acknowledged that the lack of security measures and complex user interactions limit the practical applications and utilities of these technologies.

Dhamodharan stressed the critical importance of instilling trust in the blockchain ecosystem to unlock its full potential. He emphasized that while crypto technology enables the storage and movement of capital and value, its usefulness is limited without prioritizing safety and simplicity.

Johan Gerber, EVP of Security and Cyber Innovation at Mastercard, echoed these sentiments, emphasizing the need for interoperability and underlying security of trust for global scalability of the technology.

Once these key considerations are addressed, Dhamodharan believes that it will be easier for both traditional and new players to enter the Web3 industry and participate in its growth. While capital, talent, and innovation are already flowing into the industry, Dhamodharan emphasized that the technology holds even greater promise.

Mastercard aims to provide a technological foundation that enables innovation and development for startups as well as established financial institutions, according to Gerber.

It is worth noting that Mastercard has been actively involved in the crypto industry. They introduced Crypto Secure, a software powered by CipherTrace to help banks detect and prevent transactions involving fraud-prone crypto exchanges. The company has also expressed its vision of enabling seamless cryptocurrency payments similar to contactless card payments, highlighting the need for advancements in areas such as crypto cards, service providers, and crypto-to-fiat conversion.

Mastercard’s commitment to the industry is evident through initiatives like Start Path Crypto, a program supporting the growth of blockchain, crypto, and digital asset startups. They have also ventured into non-fungible token (NFT) trading and made unique contributions, such as a former NFT Product Lead minting his resignation letter as an open-edition NFT on Ethereum.

In conclusion, Mastercard acknowledges the potential of crypto and blockchain in the financial industry and believes that addressing security and usability concerns will unlock their full value. They aim to provide a technological foundation that fosters innovation and collaboration across the industry.

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