Mastercard Set To Support Cryptocurrency On Its Global Network This Year - TCR
- As more businesses turn toward cryptocurrency, Mastercard is not the one to stay behind.
- The company is yet to step into the crypto market fully.
- While Mastercard is trying to keep up with the global demand, especially that of customers and investors, experts have questioned the feasibility of implementation.
Mastercard would be supporting cryptocurrencies on its network this year following Tesla’s Elon Musk purchasing $1.5 billion in Bitcoin on February 8. The global credit card already gives users the ability to transact with cryptocurrencies through cards, but not through the network.
According to Reuters, Mastercard had said that doing this work will create a lot more possibilities for shoppers and merchants. It will allow them to transact in an entirely new form of payment. The change may open merchants up to new customers who are already very keen on digital assets.
There are some criteria to be met
While Mastercard is trying to keep up with the global demand, especially that of customers and investors, experts have questioned the feasibility of implementation based on its requirements. Mastercard has outlined a criterion that has to be met by cryptocurrencies:
- Allow all stakeholders, including financial institutions, merchants, and mobile network operators, to contribute to and benefit from their blockchain networks
- Provide strong consumer protection, including privacy and security of consumer information and transaction data
- Operate in compliance with applicable laws and regulations, including anti-money laundering laws
However, a report by Ars Technica points out that it’s not clear if any existing cryptocurrencies can meet all three of these requirements, as it will be challenging to maintain the decentralized nature of digital currencies in a regulatory environment.
Reason for accepting cryptocurrency
Raj Dhamodharan, Mastercard’s executive vice president of Digital Asset and Blockchain Products and Partnerships, had said the company was looking to expand ways for people to send crypto. It was technically using crypto to convert fiat than spending cryptocurrency directly with merchants. Moreover, the program has helped customers by streamlining the process of payment. Dhamodharan had said the company could create more options for customers’ shopping or firm transactions by creating more avenues for solving problems that couldn’t be solved easily before.
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