As part of a pilot project in Uzbekistan, two banks have been authorized to issue Mastercard crypto cards. The launch is scheduled for late December 2023.
Summary
Mastercard crypto cards: how does the new project in Uzbekistan work?
The National Agency for Prospective Projects (NAPP) of Uzbekistan has authorized Ravnaq Bank and Kapital Bank to issue Mastercard circuit crypto cards.
This is a pilot project that will allow users to spend their cryptocurrencies. And indeed, Mastercard crypto cards are linked to crypto-wallets on an exchange that facilitates instant conversion to fiat currency.
Specifically, NAPP stated that the new “Crypto Cards – Uznex” will feature:
“automated replenishment of a bank card account with cash through the accelerated sale of crypto assets located in a crypto wallet opened on a partner’s crypto exchange for settlement operations,” the regulator explained.”
The launch of the pilot project for Mastercard crypto cards is scheduled for late December 2023.
Mastercard crypto card: Uzbekistan is a new entry
The pilot project in Uzbekistan involves new financial institutions joining an existing list for issuing Mastercard-signed crypto cards.
And indeed, in late June, Aussie Fintech Stables had announced its first Asia Pacific virtual stablecoin card, along with Mastercard and Circle.
This virtual card allows users to spend their stablecoin balance easily and securely using the Mastercard circuit, and then in both physical and online stores where Mastercard cards are accepted.
Another project involving the payments giant is the Mastercard Wirex, a crypto card that allows users to earn in euros or EURS stablecoin on a 1:1 basis through a bank account.
In this case, it is a multi-currency contactless Mastercard that allows spending in both fiat currency and cryptocurrency, automatically converting crypto into local currency at OTC/interbank rates at points of sale.
Going even further back in time, in February 2023, the popular crypto-exchange Binance had launched its Mastercard crypto card in Brazil.
This is a debit card that allows Brazilians to spend from their crypto accounts, with cryptocurrencies being converted to euros in real time at the time of the transaction.
The CBDC Partner Program
In addition to crypto cards, Mastercard also recently established the CBDC Partner Program, with the aim of bringing together key Central Bank Digital Currency industry players.
In the first set of partners, Mastercard chose Ripple with its dedicated CBDC development solution, but also Consensys, Fluency, Idemi, Consult Hyperion, Geisecke+Devrient, and Fireblocks.
The basic idea of the CBDC Partner Program is not to issue a Central Bank Digital Currency, but to help central banks in different countries develop them, adding something valuable to the economy.
