- MetaMask and Mastercard launch self-custody debit card pilot program in UK and EU
- The card uses smart contracts to convert cryptocurrencies into fiat currency at the time of transaction.
- The card aims to increase financial inclusion and will be rolled out to other regions over time.
MetaMask, a leading cryptocurrency wallet company, has launched a self-custody debit card pilot program in partnership with Mastercard and digital payments company Baanx.
Initially available only to users in the UK and the EU, the card allows customers to safely store digital assets until the exact moment a transaction takes place, where they are automatically converted into fiat currency for settlement.
The pilot program could expand to other regions over time, potentially revolutionizing how crypto assets are used in everyday transactions.
How does MetaMask debit card work?
Self-custody debit cards represent a major step forward in integrating cryptocurrencies into the mainstream financial system.
When a MetaMask card is used at a retail store, online store, or other merchant, an on-chain transaction is initiated, transferring tokens from the user’s wallet to the “Crypto Life” smart contract. This smart contract authorizes the transaction via the POS system, ensuring a seamless conversion from cryptocurrency to fiat currency, which is then processed via Mastercard’s payment network.
Users are free to choose which crypto assets to use for payments and can even decide where to store their private keys.
Increasing financial inclusion
The MetaMask debit card fits into the broader goal of increasing financial inclusion, especially with over a billion people worldwide unbanked, according to the World Bank.
Simon Jones, Baanx’s chief commercial officer, highlighted the technology’s potential to provide essential financial services to anyone with a mobile phone. This vision could dramatically improve accessibility in areas where banking infrastructure is limited.
Moreover, with inflation skyrocketing in countries like Argentina, this card provides a practical solution for individuals looking to protect their wealth by converting their cryptocurrency assets into stable fiat currencies.
The MetaMask pilot project could be an important step towards widespread adoption of cryptocurrencies into everyday life, especially in a high inflation environment.