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Mastercard to test USDC to convert cryptos to traditional currency

Mastercard will launch an experiment that could well help the “stable” cryptocurrency USDC to become essential in the online payment industry.

The Mastercard network will launch the test a tool to convert decentralized cryptocurrencies into fiat money (fiat money controlled by central banks like the euro or the dollar) thanks to the USDC. The USDC is a stablecoin, that is to say a crypto moored to a conventional currency, therefore benefiting from a low volatility unlike bitcoin or ethereum.

Big boost for the USDC

Created by Circle, the USDC, or USD Coin, relies on the US dollar and works with blockchains Ethereum, Solana, and others. The digital asset will bridge the gap between the cryptocurrencies held by Mastercard customers and the fiat currency that is used to pay in the real world. For users, this is good news as this system will allow them to reduce the number of steps required in converting their cryptos, most of which cannot be immediately exchanged for dollars or euros.

For Circle, this partnership validates a strategy based not on volatility, but on solidity and reliability. ” Circle and Mastercard Engagement Strengthens How USDC Expands Role in Internet Payments and Commerce », Rejoices the CEO of the company, Jeremy Allaire. The USDC will make it possible to establish a ” point vital »Between digital currency payment systems and large established payment networks.

Mastercard had already announced his intention to embark on cryptocurrency, but there was no question of going there in dispersed order. ” Today, not all cryptocurrency companies have the basic infrastructure to convert them into traditional fiat currency, and we want to make it easier for them. », Explains Raj Dhamodharan, head of digital assets within the Mastercard network.

This is a pilot test at the moment, nothing says that it will materialize in a service open to all Mastercard customers. Nevertheless, we feel that the desire is there.

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