Payment technology company Mastercard has teamed up with the Latin American (LATAM) e-commerce firm Mercado Libre to improve the security and transparency of its crypto program in Brazil using Mastercard’s CipherTrace technology.
Mastercard acquired CipherTrace, a crypto intelligence and analytics firm, in 2021. Mercado Libre will use CipherTrace to monitor, identify, and understand risks in the crypto space, according to a June 8 news release.
CipherTrace’s technology would also help the e-commerce company manage regulatory and compliance requirements.
Mastercard’s President of Cyber & Intelligence Ajay Bhalla touted the CipherTrace technology, saying:
The potential for cryptocurrencies to change our everyday experiences is massive. But every interaction and experience must be protected. Through advanced crypto intelligence, Mastercard’s CipherTrace technology is strengthening the security and transparency of the crypto ecosystem and bringing trust to these new payment flows.
Mercado Pago’s Senior Vice President and COO Paula Arregui said the partnership aligns with the company’s goal of democratizing commerce and financial services.
Brazil continues adopting crypto at an accelerated pace
This news comes as Brazil continues warming up to crypto. According to data from the country’s central bank, Brazilians purchased $4.27 billion worth of crypto in the past year. Bitcoin (BTC) was the most traded coin, especially after notching $65,000 in May 2021. This month also recorded the highest trading volume, with Brazilians purchasing $756 million worth of crypto.
Brazil’s rapid adoption of cryptos also saw the country’s stock exchange, B3, announce plans to launch BTC futures within the next six months.
Apart from citizens, the Brazilian government is also looking to recognize cryptocurrencies. Earlier this year, the Economic Affairs Commission (CAE) of the Senate approved a project that regulates the rules for the cryptocurrency market in Brazil.
Lawmakers are pushing for the implementation of House bill 4401/21, which seeks to establish an agency to oversee Brazil’s crypto industry. The bill also exempts legal entities from taxes associated with the processing, mining, and conservation of cryptos.