MasterCard, one of the largest payment processors in the world, sees Stablecoins and other cryptocurrencies as serious competitors for the traditional financial system. At the same time, the company is taking considerable steps in the direction of blockchain technology and tokenization.
Stablecoins advancing, Mastercard anticipates
According to a recent SEC report, MasterCard gave 30% of all its transactions in 2024. This means that sensitive card data is converted into unique digital tokens, which makes payments safer and more efficient. In addition, the company is developing solutions to support blockchain-based business models and to simplify access to cryptocurrencies.
In the report, MasterCard underlined the importance of “responsible risk management and continuous monitoring” at partners who are active in the cryptomarkt. The company works together with various crypto players to offer consumers the opportunity to purchase crypto and pay with where Mastercard is accepted.
In 2024, MasterCard reported a net turnover of $ 28.2 billion, an increase of 12% compared to the previous year. Yet the sector stands for major changes. Stablecoins, who are often 1-on-1 linked to fiat money, are becoming increasingly popular and can put pressure on traditional payment processors such as Mastercard and Visa.
New regulations can speed up this shift. In the US, policy makers work on legislation that must regulate Stablecoins and at the same time strengthen the worldwide dominance of the dollar. A bill by American congress members French Hill and Bryan Steil must create a legal framework for this.
Stablecoins run more volume than Visa and Mastercard
The growth of Stablecoins is impressive. According to figures from CEX.IO, the total transaction traffic from Stablecoins in 2024 reached no less than $ 27.6 trillion. With this it more than exceeds the combined volumes of both Visa and Mastercard.
A large part of this volume rise is powered by automated trade bots. According to Cex.io analyst Illia Otychenko, this does not mean that the volume is artificial; Bots improve the efficiency of the market.
In the coming years it will become clear whether the traditional payment giants can maintain their position or whether Stablecoins cause an inevitable disruption.
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Source: https://newsbit.nl/mastercard-tokeniseerde-30-van-zijn-transacties-in-2024/
