Mastercard, one of the most famous payment systems in the world, is going to integrate the CipherTrace cybersecurity tool to verify digital assets. As a result, this solution will help users of the payment system to use cryptocurrencies in accordance with the provisions of financial regulation. Ajay Bhalla, head of Mastercard’s cybersecurity department, said that the introduction of this innovation was caused by the growing popularity of cryptocurrencies among a wide audience.
The introduction of a cybersecurity solution by a payment giant is a good example of the need for payment systems to interact with crypto companies in order to provide customers with innovative solutions in the field of digital assets.
Offering their customers credit and debit cards with support for cryptocurrencies, payment giants, including Mastercard and Visa, cooperate with anti-money laundering companies to ensure a high level of security of transactions with digital assets.
Ajay Bhalla, president of cybersecurity at the payment company, said that Mastercard payment system customers are looking for high-quality solutions to use crypto assets as reliably as traditional payment methods. In order to allow customers to use cryptocurrencies in everyday life, the payment company decided to acquire CipherTrace. This is a crypto company that allows customers to check about 900 cryptocurrencies. The company will be able to develop more tools to prevent money laundering and fraud.
Transaction verification
According to experts, financial companies will need to set up transaction verification tools to support cryptocurrencies. As Dave Jevons, CEO of CipherTrace, said, every financial institution should verify transactions. In addition, he also stated that since Mastercard is represented all over the world, this will allow the company to interact with regulatory authorities without intermediaries due to the fact that many banks are going to issue their cryptocurrencies (CBDC).
The need to develop crypto transaction verification tools is growing day by day as banks compete with each other to develop their own digital currencies. According to a recent survey, 73% of respondents said they were concerned about hacks and cyberattacks when using crypto assets.
Thus, the importance of companies engaged in cryptanalytics and transaction monitoring increases. The introduction of cryptocurrencies into the daily lives of users requires high-quality AML tools to verify transactions and protect their users from involvement in money laundering & using bitcoin mixers.
Every user wants to be sure that he uses clean cryptocurrencies that did not participate in payments on the “black market” and protect his crypto assets.
As traditional banks around the world are going to issue their own cryptocurrencies, people will use cryptocurrencies on a daily basis.
AML tools and cryptanalytic services allow users to verify transactions for “dirty coins” and make the use of cryptocurrencies safe. This will help to adapt cryptocurrencies to a wide audience. A good example is the implementation of CipherTrace in the work of Mastercard. The acquisition of CipherTrace by a giant payment system contributes to the spread of cryptocurrencies around the world. Cryptocurrencies have become part of the core infrastructure of financial payments.
Jevons, CEO of CipherTrace, said that payment firms will cooperate with analytical crypto companies engaged in blockchain analytics to ensure the development of digital assets.
According to Alex Tapscott, leading payment systems are starting to use cryptocurrencies in their work, considering digital assets a big threat to their business. Mastercard has become the main way to grow digital assets through interaction with companies such as Circle, Gemini and BitPay.
According to statistics, in July 2021, Visa processed cryptocurrency transactions worth more than $1 billion with total expenses for the first half of 2021. This amount was obtained through a partnership with 50 cryptocurrency companies. It has implemented credit card programs, allowing users to use cryptocurrencies around the world.
In addition, stock exchanges have begun to cooperate with companies engaged in cryptanalytics and AML verification. The mass introduction of companies engaged in cryptanalytics and AML verification into the traditional financial system is due to the fact that CBDC, stable coins, and NFT have entered the traditional financial market.