July 21, 2021

Crypto Exchange To Fiat: Mastercard Launches Testing Using USDC

 Mastercard has announced the crypto project will start with the conversion of crypto to fiat using stablecoin, USDC.

They will also work with several other companies for the purpose of helping cryptocurrency owners spend on digital assets at retailers that accept such payment cards.

In a testing announcement on Tuesday, it was informed USDC will act as a cryptocurrency intermediary in consumers ’digital wallets with fiat currency to be paid to merchants.

In fact, this exchange is much easier: from a cryptocurrency to stablecoin and convert stablecoin to dollars (crypto-stablecoin-fiat currency), as opposed to a live cryptocurrency to fiat (crypto-fiat currency).

In addition to Mastercard, Visa first conducted testing of transactions using USDC earlier this year.

Nevertheless, the decision taken by Mastercard appears to be under pressure from supervisors and lawmakers on the stablecoin sector.

The President’s Working Group for Financial Markets on Monday announced it would issue proposals related to stablecoin rules in the coming months. This attention will involve growth, use cases, and stablecoin risk.

Jerome Powell also last week debated the issue in the hope of stricter laws on stablecoins if the asset is to be applied as a medium of payment.