2 November 2024
MasterCard backs Cryptocurrency on its Network
MasterCard is all set to allow it's 1 billion users to spend cryptocurrencies at more than 30 million merchants in 2021. The firm believes this may open merchants to new customers and retain the existing ones who are already migrating to digital assets over traditional fiat options.
The global payments giant is planning to support stablecoins due to its "reliability and security. The names of any specific cryptocurrencies it will integrate is yet to be revealed.
However, MasterCard proposed the four core criteria that will be assessed: robust consumer protections including consumer privacy and security, strict KYC compliance, adherence to local laws and regulations, and stability as a means of payment.
MasterCard also notifies consumers that it is actively engaging with several major central banks globally to support central bank digital currency initiatives or CBDCs. The firm had released a "virtual sandbox" tool last year to demonstrate how a CBDC can be used to settle consumer purchases using MasterCard's infrastructure.
MasterCard's announcement also reported increased demand for digital assets among its users, noting that many users have been buying crypto assets with their MasterCards amid the current bull market.
"Digital assets are becoming an important part of the payments world," MasterCard concluded.
MasterCard has devoted its significant resources for exploring the distributed ledger technology, with the company currently holding 89 blockchain patents, while another 285 applications are on the way. MasterCard has also engaged itself in crypto payments for some time now and partnered with Wirex and BitPay for creating crypto cards, although no cryptocurrencies are moved through the network.
MasterCard backing cryptocurrency is the latest news in the series of institutions adopting cryptocurrency. Followed by Tesla's announcement of purchasing $ 1.5 billion of Bitcoin from its cash reserve and it would soon accept Bitcoin payments for its cars.
Last week, PayPal also announced that it would offer crypto payments for its 26 million merchants after its limited crypto trading services "exceeded expectations."
A week before that, Al Kelly- Visa President and CEO also reaffirmed his commitment to crypto payments and onramps during his first-quarter earnings call.
Now there is growing speculation about which other tech company will be entering the crypto world.
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