A recent collaboration between infrastructure company Web3 Transak and credit card giants Visa and Mastercard could well simplify the conversion of crypto currency into fiat money. This announcement is particularly welcomed by users of crypto wallets such as MetaMask, Ledger and Trust Wallet. Indeed, MetaMask holders can now sell their crypto-currency directly on a Visa card. This collaboration enables the conversion of almost 40 types of crypto-currency into local fiat currency at 130 million Visa points of sale in 145 countries.
A major turning point in the industry
Visa and Mastercard’s renewed commitment to the crypto-currency sector is seen as a major turning point for the industry. Antoni Trenchev, co-founder and managing partner at Nexo, emphasized that this reintegration marks a crucial moment in the sector’s trajectory. Crypto-currency holders now have more options for making payments, offering potentially better alternatives.
In 2021, Mastercard acquired CipherTrace, a leading crypto-currency intelligence company, to strengthen its capabilities in this area. In addition, in June 2023, Mastercard launched its Multi-Token Network, an initiative to make transactions within digital asset and blockchain ecosystems secure, scalable and interoperable.
Consequences for Crypto Exchanges
This collaboration between Visa, Mastercard and crypto wallets could simplify crypto-to-crypto conversions for users. However, it also raises questions about the potential impact on crypto exchanges. While wallet holders benefit from greater ease of use, exchanges could face increased competition in the conversion arena.
In conclusion, the growing involvement of Visa and Mastercard in the crypto-currency sector paves the way for wider adoption and more widespread use of digital assets. This development could transform the way crypto holders make payments on a daily basis, while posing potential challenges for exchanges specializing in crypto-currency conversion.
