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MasterCard announces support for cryptocurrencies on its network

MasterCard has announced that it will support cryptocurrencies in 2021This paves the way for nearly 1 billion users to dispense digital assets with more than 30 million merchants.

The company thinks so This can attract new customers for retailers and retain existing customers who are already migrating to digital assets compared to traditional fiat options.

“It’s about choosing. MasterCard is not here to recommend that you use cryptocurrencies. But we’re here to enable customers, retailers, and businesses to move digital value. “

Although the global payments giant stated that it plans to support stablecoins because of its “reliability and security”, Mastercard declined to name a specific cryptocurrency to be integrated.

MasterCard announces support for cryptocurrencies on its network
MasterCard announces support for cryptocurrencies on its network

Yet, Mastercard offered four basic criteria by which potential assets are assessed: strong consumer protection, including privacy and consumer safety, strict KYC compliance, compliance with local laws and regulations, and stability as a means of payment..

MasterCard also indicated this “actively works with several of the world’s major central banks” to support central bank initiatives for digital currenciesor CBDC.

Last year, The company launched a “Virtual Sandbox” tool forto demonstrate how a CBDC can be used to process consumer purchases using the MasterCard infrastructure.

MasterCard’s announcement also signaled growing customer demand for digital assets Many users have bought crypto assets with their MasterCards in the current bull market.

“Digital assets are becoming an increasingly important part of the world of payments.”MasterCard closed.

“We’re here to enable customers, merchants, and businesses to move digital, traditional, or crypto any way they want. It should be their choice, it should be their money.”

MasterCard has already devoted significant resources to research into blockchain technology The company currently has 89 blockchain patents and another 285 filings are pending.

The payment provider has been involved in cryptocurrency payments for some timePartnership with Wirex and BitPay to create cryptocurrency cards even though no cryptocurrency was moved across the MasterCard network.

The MasterCard announcement is the latest in a series of institutional cryptocurrency acquisitions that have taken place in the past few weeks.. This week, Tesla announced the purchase of $ 1.5 billion worth of Bitcoin from its cash reserve, adding that it will soon be accepting Bitcoin payments for its cars.

Last week, PayPal doubled its cryptocurrencies by announcing it would offer cryptocurrency payments to its 26 million merchants “has exceeded expectations” after its limited cryptocurrency trading services.

A week earlier had the President and CEO of Visa Al Kelly reiterated his commitment to crypto payments and ramps during his earnings call for the first quarter.

To There has been speculation as to what other tech companies will be entering the cryptocurrency world next, whereby the financial services provider RBC Capital Markets determines this Apple should follow in Tesla’s footsteps. RBC analyst Mitch Steves wrote to his clients that the development of a cryptocurrency exchange on the Apple wallet would create a sizable new market for growth.

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