This article is from cointelegraph.com.br and the original article can be read here in Portuguese
MasterCard announced this Wednesday, 8th, that it will become a security infrastructure provider for all operations involving the purchase and sale of cryptocurrencies from Mercado Livre to retail investors in Brazil.
The partnership between the global giant and the most valuable company in Latin America, provides that CipherTrace, Mastercard’s unit specialized in blockchain technology risk analysis, will provide infrastructure and technical support for MercadoLibre to monitor, identify and assess the risks involving trades carried out on its platform for the purchase and sale of cryptocurrencies.
CipherTrace’s digital intelligence and analytics technology is able to assess the risks of individual cryptocurrency transactions, assigning a security and integrity rating to the entities involved in the transaction, based on a series of indicators.
The company also offers cryptocurrency tracking solutions to prevent the use of the platform in illicit operations, facilitating possible investigations not only by Mercado Livre but also by the competent authorities, as highlighted by Estanislau Bassols, president of Mastercard Brasil, when commenting on the new partnership:
“CipherTrace is able to identify information related to the dark web or other repositories through the blockchain. It also recognizes exchanges to identify which ones have greater or lesser risk. With this, it offers a more assertive score [em relação à segurança das operações].”
Mercado Livre adopts cryptocurrencies
Mercado Livre inaugurated the cryptocurrency trading service in Brazil for retail users at the end of last year, through its payments application, Mercado Pago.
After this initial move to encourage the adoption of crypto-assets by small Brazilian investors, the company wants to contribute to the development and transparency of the digital asset market in Brazil, as highlighted by Paula Arregui, Senior Vice President and COO of Mercado Pago, in the press release:
“In line with our purpose of democratizing commerce and financial services, we want to break down more barriers, providing a simple and secure experience with crypto assets. Partnering with Mastercard allows us to support financial education, user engagement and drive a more transparent industry.”
The growing adoption by retail investors makes Brazil one of the most promising markets for companies and service providers related to the cryptocurrency market in Latin America, said Bassols:
“Brazil is one of the hottest cryptocurrency markets in Latin America, with high levels of adoption. By partnering with Mercado Livre, we are extending our long-standing relationship of working together to solve the needs of our common customers, helping consumers to pay simply and securely using cryptocurrencies.”
The partnership with Mercado Livre is just Mastercard’s first foray into the cybersecurity segment with a focus on crypto assets in Brazil. The company plans to expand its market share by developing platforms to test and support the implementation of central bank digital currencies (CBDCs), supporting transactions involving fiat-backed stablecoins directly on its network, as well as encouraging wider use of blockchain technology and non-fungible tokens (NFTs).
As Cointelegraph Brasil recently reported, Mastercard’s vice president of new product development and innovation, Harold Bossé, stated that “the mass adoption of cryptocurrencies will happen sooner or later”.
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