Mastercard
Called Crypto Secure, the system uses artificial intelligence (AI) algorithms to better determine the risk of fraudulent crypto exchanges on the Mastercard payment network. The system, created by CipherTrace, uses data mostly from the blockchain to decide which purchases of digital assets to approve.
"Trust is our business and with cryptocurrency more intertwined in our daily lives this is an exciting next step in our journey," said Ajay Bhalla, president of cyber and intelligence at Mastercard, in a release. "Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard."
On the platform, banks and other card issuers have access to a dashboard with color-coded ratings that range from green (safe) to red (dangerous). The dashboard also allows issuers to accurately identify crypto exchanges, measure transaction approvals and declines from these exchanges while weighing their risk profile with a single score, and access a "benchmark" rating to compare with a peer financial group. Mastercard already uses similar methods for transactions made with conventional currency.
Through this new service, Mastercard is working to better compete with rival Visa
Compliance has become an important focus for the crypto industry as more financial institutions offer their own services for trading and storing digital assets. The Biden administration recently released its first-ever framework on regulating cryptocurrencies in the United States, while the European Union also approved new crypto laws to give better stability and regulation to the growing industry.
And trust is what the crypto market really needs. The entire market has lost about $2 trillion in value since its peak in November 2021, with Bitcoin now trading about 70% off its over $68,000 all-time high.
