MetaMask has initiated a pilot program for a self-custody debit card in partnership with Mastercard

The World Bank’s 2022 data indicates that over one billion individuals are either unbanked or have inadequate access to banking services.

Mastercard and digital payments company Baanx have collaborated with MetaMask, a popular decentralized finance (DeFi) wallet, to introduce a pilot program for self-custody debit cards. The program is currently available to a limited number of users in the United Kingdom and the European Union, with the intention of expanding the product to other regions in the future.

Until the transaction is processed and the customer’s digital assets are converted into fiat for payment at retail outlets, online purchasing outlets, and other merchants, the card enables users to self-custody their funds.

In a statement to Cointelegraph, Lorenzo Santos, senior product manager at Consensys, clarified that users must maintain their crypto on the Linea network and utilize Linea to establish spending limits on the payment card.

Additionally, Santos delineated the entire transaction processing procedure. As per the Consensys executive, the swiping of a MetaMask card generates a onchain transaction that transfers tokens from the user’s wallet to the “Crypto Life” smart contract. This enables the merchant to authorize the transaction through their point-of-sale system, and the smart contract manages the conversion from crypto to fiat. Subsequently, the payment is complete through Mastercard’s payment network.

Additionally, clients will have the opportunity to specify which cryptocurrency will serve as their payment method. Users will also have the option of storing their credentials in a chosen location.

Although the new MetaMask pilot is currently limited to the European markets, initiatives such as this have the potential to provide banking services to the global unbanked population and simplify crypto payments for individuals residing in high inflationary environments. Simon Jones, the chief commercial officer of Baanx, stated to Cointelegraph:

“Our goal is to ensure that all individuals with a mobile phone have access to financial services, as there are currently 1.2 billion individuals worldwide who are officially unbanked. Our objective is to achieve financial inclusion for all through the use of new technologies.”

Nigeria’s Securities and Exchange Commission chief, Emomotimi Agama, recently acknowledged the potential of digital assets to provide banking services to the 38 million unbanked adults in the country.

Also Read: The United States government transmits $590 million worth of Silk Road-seized Bitcoin to Coinbase A