Mastercard Expands Stablecoin Payment Support Through New Blockchain Partnerships

Among the largest payment networks in the world, Mastercard has revealed a strategic alliance with MoonPay to include stablecoin payments into its cards.

Mastercard is integrating stablecoin payments into its cards through a partnership with crypto company MoonPay, marking a turning point in the widespread adoption of popular stablecoins. The cooperation will connect blockchain technology with daily financial services by enabling swift, low-cost money transfers across the globe.

Among the largest payment networks in the world, Mastercard is known for facilitating seamless and secure transactions. Now, the company is joining forces with MoonPay to introduce stablecoin payments compatible with Mastercard cards. This project will empower people to utilize stablecoins, such as USDC or USDT, directly within the Mastercard ecosystem.

This integration is particularly relevant for consumers seeking faster and less expensive cross-border payments, and it will facilitate the broad use of crypto wallets in the conventional financial system. The partnership is part of Mastercard's larger drive into blockchain innovation, following earlier pilot projects in crypto settlements and digital identity.

Stablecoins, which are pegged to the value of fiat currencies, are being increasingly viewed as the building blocks of the next financial systems. Unlike volatile cryptocurrencies, stablecoins offer price stability, making them suitable for everyday transactions, payroll, and remittances.

"Stablecoins are dollars on a blockchain. Anyone with a phone and internet can now receive money at the speed of light," said Ivan Soto-Wright, CEO of MoonPay.

There are over 120 million stablecoin wallet addresses, and about 30 million people are actively using them for payments, according to Soto-Wright. The new Mastercard integration will allow these users to directly spend their digital dollars without needing to sell them to fiat first, eliminating unnecessary steps and fees.

This partnership will introduce a seamless and efficient method for consumers to use their preferred digital assets for everyday purchases at any merchant that accepts Mastercard, whether online or in-store.

The integration of stablecoins into Mastercard's network has the potential to disrupt the financial landscape and introduce new possibilities for consumers and businesses alike. It could also pave the way for a multi-token network, expanding the range of digital assets supported by Mastercard in the future.

As Mastercard expands its footprint in the cryptocurrency domain, the company is pursuing a "Venmo-like" crypto experience, aiming to provide users with a user-friendly and engaging platform for managing their digital assets and performing financial transactions.

The partnership between Mastercard and MoonPay is expected to have a significant impact on the cryptocurrency industry, as it could lead to more widespread adoption of stablecoins and other digital assets for mainstream financial use cases.

In other news, Bitcoin mining revenue in July 2023 fell sharply by 50% compared to the previous month, according to CCXV's analysis of blockchain data. The revenue dropped to $4.56 billion, marking the lowest level since December 2021.

The decline in revenue was attributed to the decrease in Bitcoin's price and the hash rate, which is a measure of the total computing power used to mine Bitcoin. The hash rate fell by 15% in July, which reduced the efficiency of miners in collecting block rewards.

Despite the decline in revenue, miners' operating profit remained relatively high at $3.16 billion for the month. This profit was generated after deducting mining costs, which includes electricity expenses and equipment depreciation.

The operating profit remained substantial due to the low mining costs in some regions and the high prices of Bitcoin and other cryptocurrencies earlier in the year. However, as Bitcoin's price fell and energy prices rose, operating profit is expected to decrease in the coming months.

The partnership between Mastercard and MoonPay is expected to drive further innovation in the cryptocurrency industry, while the analysis of Bitcoin mining revenue provides valuable insights into the profitability and efficiency of the mining sector. As the cryptocurrency market continues to evolve, both partnerships and economic indicators will play a crucial role in shaping the future of digital assets.

It is important to note that while illegal activity makes up less than 1% of all cryptocurrency transactions, according to Chainalysis, and blockchain analytics companies such as Elliptic are already facilitating real-time transaction monitoring for financial crime, critics sometimes underline how illegal actors may abuse Bitcoins.

However, the open, public ledger of blockchain actually improves anti-money laundering initiatives and provides greater compliance capabilities, rendering stablecoins a safer choice for the world’s banks, not a threat.

This partnership is part of Mastercard's broader strategy to innovate in the blockchain space. Earlier this year, the company launched a pilot program for crypto settlement and is also developing a digital identity solution on the Hedera network.

Mastercard's move comes as major financial institutions and payment networks are increasingly integrating crypto into their products and services.

Visa has partnered with cryptocurrency platforms to enable direct-to-consumer (D2C) e-commerce in the metaverse, while American Express is offering a cryptocurrency-themed card.

The partnership is expected to have a significant impact on the cryptocurrency industry, as it could lead to more widespread adoption of stablecoins and other digital assets for