Binance and Mastercard, two of the biggest monetary companies in the world, have partnered to advance blockchain technology. The new agreement is designed to encourage the adoption of crypto payments in the retail sector.
The collaboration between Binance and Martercard aims to offer crypto alternatives to traditional fiat currency transactions for shops. The two companies introduced the new project in Argentina, before expanding to other parts of the world.
Named as “Binance Card” will alloW Argentinean Binance users to purchase and pay bills with cryptocurrencies, including Bitcoin (BTC) and BNB.
“Our work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay,” Said Walter Pimenta, the executive Vice President of Mastercard Latin America and the Caribbean. “Together with our partners, Mastercard has been leading the payments industry in enabling entry to this exciting new world, helping bring millions of additional users into crypto and other digital assets in a safe and trusted manner”,
Binance card is expected to expand for other South American countries like Chile and Brazil in the near future.
What This Means For Blockchain
Without actual day-to-day use, cryptocurrencies will never be able to stablish itself as an actual currency.
The most effective way of expanding blockchaing use is to use it as a payment system where people can use cryptocurrencies on their daily lives.
With the introduction of a cryptocurrency credit card, Binance and Mastercard will help introduce cryptocurrency as a currency option for millions of South Americans.
“Payments is one of the first and most obvious use cases for crypto, yet adoption has a lot of room to grow,” The general director of Binance Latin America, Maximiliano Hinz, stated. “By using the Binance Card, merchants continue to receive fiat and the users pay in cryptocurrency they choose.
We believe the Binance Card is a significant step in encouraging wider crypto use and global adoption and now it is available for users from Argentina”, said Maximiliano Hinz, general director of Binance in Latin America.”
Mastercard Advancing Into Crypto
The multinational financial services corporation Mastercard is one of the largest financial companies adopting cryptocurrencies.
In April of 2021, Mastercard announced that it will introduce cryptocurrencies in its financial network. Later in the year, the company also introduced crypto payment cards in Asia.
The company believes that introducing cryptocurrency payments will create a more possibilities for shoppers and merchants alike.
In order to make these initiatives successful, the business already owns one of the largest blockchain patent portfolios in the payments industry.
Mastercard has over 89 blockchain patents globally, and another 285 blockchain applications pending globally.
“We are inspired by so much of the work going on in the payments world,” Mastercard wrote on a press release. “In banking, in emergent fintechs, in crypto — to push forward change.
And we are doing as much as we can to set the stage for these players to take the next step forward.”